Payments

Card swipe fees may impact consumer celebrations

Adobe Stock

July 5, 2023

Credit card swipe fees could boost consumers' 4th of July costs by $500 million, according to the Merchants Payments Coalition. The fees would be equal to a package of hot dogs or box of sparklers, according to a press release.

"Fourth of July is the most American of our national holidays but there is nothing American about fees that are set without competition," MPC Executive Committee member and National Association of Convenience Stores General Counsel Doug Kantor said in the press release. "Americans celebrating Independence Day will pay more for everything from sparklers to hot dogs because of swipe fees that have skyrocketed higher than the biggest fireworks display. Lack of competition is why these fees continue to rise and why consumers are paying more. It's time for Congress to bring swipe fees under control and make the card industry compete the same as small businesses do every day. Competition is the American way and there's no better time to remember that than the Fourth of July."

The MPC estimates higher costs from swipe fees on food, alcohol, fireworks and flights could total $513 million, or about $4 per U.S. household.

The coalition represents retailers, supermarkets, convenience stores, gasoline stations, online merchants and others that want a more competitive and transparent card system.