WASHINGTON–The Merchants Payments Association is back with another event-related example of how it says “swipe” fees are hurting consumers, in this case saying the fees will drive up the price of school and college supplies by more than $3 billion this year.
The fees said the cost to the average family is between $20 and $30, the Merchants Payments Coalition added.
Averaging 2.24% of the transaction but ranging as high as 4%, swipe fees are most merchants’ highest operating cost after labor and have to be built into pricing, the MPC said.
“With few consumers using cash and credit card rules making discounts difficult, all shoppers pay more because of swipe fees regardless of how they pay,” according to the organization.
Families are expected to spend an average $890 on K-12 school supplies, clothing and related items for a record $41.5 billion this year, according to the National Retail Federation.
‘$20 Per Family Cost’
“While a precise amount is difficult to calculate, MPC estimates that swipe fees account for just under $20 of the per-family cost and $929.6 million of the total,” the merchants group stated. “Back-to-college spending is expected to average $1,367 with a total of $94 billion, resulting in swipe fees of just over $30 on average and $2.1 billion overall. Together, back-to-school and back-to-college swipe fees could amount to just over $3 billion.”
The MPC issued its analysis as it and other merchants groups and retailers continue to lobby for the Credit Card Competition Act, which is adamantly opposed by credit unions.
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