Credit Card Swipe Fees Raise Costs for U.S. Shoppers and Stores
Credit card swipe fees are adding pressure on U.S. shoppers and small businesses as more purchases move away from cash. Retailers say the fees charged on card transactions are becoming a larger cost of doing business, with some of that burden reflected in everyday prices.
At a Tiger Fuel gas station and convenience store near the Blue Ridge Mountains in Ruckersville, Virginia, managers say the company expects to pay more in card fees than it pays in rent. The added cost comes as gas stations and convenience stores already face pressure from fuel prices, labor expenses and thin margins.
Credit Card Swipe Fees Add to Retail Costs
Swipe fees, also called card fees, are charged when customers pay with credit or debit cards. For some premium rewards cards, the cost can be as high as 5%. Maurice Lamarche, vice president of retail operations for Tiger Fuel Co., said the charges make it harder for stores to keep prices low and invest in wages.
“It’s tougher for us to stay afloat, tougher for us to make money at our stores,” Lamarche said. “It makes it harder for us to keep our prices low.”
Merchant costs tied to card payments have climbed sharply. Credit and debit card fees paid by U.S. businesses to processors led by Visa and Mastercard reached about $198 billion in 2025, according to industry data cited by retail groups. The increase reflects higher consumer spending, fewer cash transactions and higher fees connected to rewards programs.
Cash and Debit Users May Face a Hidden Cost
Retail groups argue that swipe fees are ultimately passed on to shoppers through higher prices. The National Retail Federation estimates the fees add more than $1,200 a year in costs for the average household.
Rewards card users may recover some of that cost through cash back, travel points or premium benefits. But customers who pay with cash, debit cards or basic credit cards may pay the same higher prices without receiving the same rewards.
A Harvard Business School study estimated that interchange fees create about $30 billion a year in transfers from cash and debit users to credit card users. For shoppers, the debate matters because the cost of card payments is increasingly built into the price of groceries, gas and other everyday purchases.
