WASHINGTON–The Merchants Payments Coalition is again using another holiday to highlight credit and debit card swipe fees.
In this case, the MPC said “rising swipe fees” banks charge merchants to process credit and debit card transactions “could potentially cost consumers over $500 million in higher prices for everything from cards and candy to roses and rings this Valentine’s Day.”
The organization earlier used the Christmas holidays to suggest swipe fees charged to the average family would total $18.50 during the shopping season, enough for a Barbie Doll or Lego set.
‘Fewer Flowers’
“There’s nothing romantic about swipe fees,” MPC Executive Committee member and National Association for Convenience Stores General Counsel Doug Kantor said in a statement. “Swipe fees can mean fewer flowers in the bouquet, fewer chocolates in the box and fewer carats in the ring because they drive up the cost of everything Americans buy. For couples celebrating on Valentine’s Day, that means they may have to settle for less than they could have if these fees weren’t out of control.”
The MPC cited data from the national Retail Federation that show consumers are expected to spend an average $193 on Valentine’s Day items such as candy, flowers, jewelry, greeting cards, clothing and evenings out this year for a total of $25.9 billion. Based on the average 2.22% rate for Visa and Mastercard, that would include $4.28 in swipe fees – as much as a Valentine’s greeting card or a piece of chocolate from a mid-priced gift box – and would add up to $575 million nationwide if all purchases were made with credit cards, according to the MPC.
For Richer or Poorer
“The biggest swipe fee cost can come for couples who get engaged on the most romantic day of the year,” the MPC said. “BRIDES magazine says couples spent an average $3,756 on an engagement ring in 2020, which would include a swipe fee of $83.
“Credit and debit card swipe fees – which doubled over the past decade and soared 25% to a record $137.8 billion in 2021 – are most merchants’ highest operating cost after labor,” the MPC continued. “The fees are far too high to absorb, especially for small merchants, and drive up consumer prices by nearly $1,000 a year for the average family.”
The organization said it continues to support the reintroduction in the current Congress of the Credit Card Competition Act.
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