A report by the Electronic Payments Coalition compares what has happened to the credit card industry in Europe and the U.S. over the past 12 years. It finds:

• In the US more than 80% of Americans have access to cards. In Europe the rate is about 50% and in Eastern Europe closer to 20%.
• Credit card annual fees shot up in Europe after price controls on interchange fees were implemented.  The fees charged customers are 17% higher in Italy, 76% higher in Germany, and 105% higher in France than in the US.
• Annual fees constitute 5% of revenue in the US, but are “three to six times higher in the EU.”
• Price controls slashed rewards programs. Most UK rewards cards, for instance, pay about 0.25% cash back, versus a typical 2% on US cards.

Bottom line: cards are less available, less affordable, and offer much less generous reward programs in Europe than in America. Is this the model we want to copy?