Omnichannel

Swipe fees could cost consumers this holiday season

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December 21, 2023

The swipe fees banks charge retailers to process credit card purchases could cost consumers nearly $20 billion in higher prices this holiday season.

The prediction comes from the Merchants Payments Coalition which claims the fees for an average family equal the cost of a holiday ham or Lego set.

"After a year of high inflation, the last thing consumers need is high credit card fees that make holiday purchases from toys to Christmas trees more expensive," MPC Executive Committee member and National Retail Federation Chief Administrative Officer and General Counsel Stephanie Martz said in a press release. "Swipe fees charged by banks drive up the cost of everything Americans buy during the holidays and only Scrooge would think that's fair as many families struggle to put smiles on children's faces. It's time to put Santa ahead of the Grinch and pass legislation to bring these fees under control."

Consumers are expected to spend an average $875 during the November-December holiday season for a total as high as $966.6 billion, according to NRF. Based on the average 2.24% rate for Visa and Mastercard, that would include about $20 in swipe fees.