NEW YORK—Last year, U.S. merchants paid a record $160 billion in processing fees to accept $10.6 trillion in card payments, according to the Nilson Report.
As CUToday.info has been reporting, the data has been cited repeatedly by supporters of the Credit Card Competition Act, including the National Retail Federation and the Merchants Payments Coalition.
The bulk of those fees, about 79%, was from credit cards, Financial Times stated, in its analysis.
“Many companies’ profits margins are narrowing as they get squeezed by higher inflation. That has prompted a growing number of businesses to attempt to pass higher costs on to their customers,” Financial Times said. “They are adding a surcharge or a convenience fee on those who want to swipe their plastic.”
More Businesses Charging Fee
According to Payment consultancy TSG, between 5%-10% of the eight million card-accepting small businesses in the U.S. now charge fees for credit card usage, Financial Times noted.
That is up from 2% five years ago.
“Underscoring the growing trend, TSG said about 15% of new merchants who accept card payments have a surcharge policy,” Financial Times added.
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