answer:Maybe your institution is anti consumer debt, unlikely but possible. Maybe they just wish not to pass along the fees to you in the form of increased tuition, again probably unlikely. Merchants negotiate those fees on an regular basis. Maybe they have negotiated exclusivity with one of the other credit forms. I know merchants on both sides of the fence. Probably since your $2 cup of coffee has such a high profit margin, the coffeeshop is willing to give up a portion of that profit in convenience to you. Great gig huh? Credit Card companies make money off you for lending it and merchants for accepting it!