WASHINGTON–A merchants group is saying card swipe fees charged to Americans this July 4 weekend will cost the equivalent of “full pack of hot dogs” for “patriotic American families.”
The Merchants Payments Coalition, which has been outspoken over card swipe fees, said the charges are going to “add hundreds of millions of dollars to the cost of everything from food to fireworks as Americans struggling amid rampant inflation celebrate Independence.”
“Consumers are eager to celebrate this Fourth of July, but credit card fees are adding to the cost of the holiday,” MPC Executive Committee member and National Association of Convenience Stores General Counsel Doug Kantor said in a statement. “Swipe fees are a percentage of the transaction, so they go up whenever prices go up and are a multiplier effect for inflation. The fees can be the equivalent of another box of sparklers or package of hot dogs and are money that disappears up in smoke more than anything Americans shoot into the sky or put on the grill. That’s a windfall for the card industry but less sparkle for consumers watching their wallets.”
The organization said most consumers are unaware banks and card companies take 2% every time a card is swiped for a payment.
A ‘Record’ Level of Fees
“Swipe fees soared 25% last year to a record $137.8 billion for credit and debit cards combined and have more than doubled over the past decade,” the organization added. “The fees are most merchants’ highest operating cost after labor and drive up prices they charge consumers, working out to about $900 a year for the average family. Since credit card rules make cash discounts difficult, consumers pay more even if they pay with cash.
The MPC is estimating that swipe fees on food, fireworks and flights over July 4 weekend will approach $350 million.