

Maybe if you have a bad bank, I’ve checked mine and it’s competitive. April 17 I did a Bandcamp transaction in GBP, charged my Chase card and got <1% difference in USD compared to the mid-market exchange rate on that date. It’s $90.21 on my statement, $89.92 when I calculate it, so +0.3% off the mid-market rate.
If you’re getting anything worse than this, you’ve got a shady bank, and there’s no lack of competition.

I don’t see this as tipping, more like a commission. If I don’t have to decide, it isn’t tipping. The only issue I see is it makes the items seem 20% cheaper than they actually are.
What’s the difference between a $120 check that has wages factored into menu prices and a $100 check with a $20 service charge? They’re both $120.