Yemeni American Merchants Say Some Small Businesses ‘Will Not Make It’ Under High Credit Card Swipe Fees
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WDKY-TV: Record Valentine’s Day spending expected in Kentucky
This year, the average shopper is expected to spend $189 on Valentine’s Day gifts. On top of that, the Merchant Payments Coalition warns consumers should be aware of rising swipe fees on credit and debit cards. Credit card companies are expected to charge shoppers over $600 million in hidden costs.
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Retail Insight Network: Record Valentine’s Day sales to come with added costs
The Merchant Payments Coalition estimates that card processing fees—often referred to as “swipe” fees—could contribute over $600m to consumers’ total expenditure this month.
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The U.S. Sun: LOVE TAX Shoppers warned over ‘harmful’ hidden fees ahead of Valentine’s Day as expert urges buyers to watch how you ‘swipe’
The sneaky “swipe” fees that banks charge retailers to process credit and debit card transactions could tack on over $600 million to shoppers’ receipts this February, according to estimates from the Merchant Payments Coalition.
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Center Square: Washington, Maryland lawmakers propose banning credit card swipe fees on sales taxes
“The credit card industry price-fixing swipe fees is bad enough, but taking a slice out of tax dollars before retailers can hand them over to the state of Maryland is unconscionable,” MPC Executive Committee member and National Association of Convenience Stores General Counsel Doug Kantor said in a statement. “Retailers have to make up the difference, and that ultimately drives up prices for consumers. It is time for this abuse to end. Marylanders’ tax dollars should not be siphoned off to Wall Street this way and we appreciate legislators looking to solve this unjust problem.”
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RV Pro: OHI Continues Advocacy Against RV Park Credit Card Fees
In partnership with the Merchant Payments Coalition (MPC), OHI is ensuring that the outdoor hospitality industry has a voice in the fight against rising processing costs. Visa and Mastercard currently dominate the credit card marketplace, imposing fees that totaled over $100 billion in 2023, costs that disproportionately affect small, family-owned businesses like OHI members.
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Convenience Store News: Valentine's Day Spending Breaks New Record
"Valentine's Day is one of the most popular holidays for loved ones to enjoy a fancy meal out on the town or a romantic meal at home, but swipe fees drive up the cost of everything for couples celebrating this special day," said MPC Executive Committee Member and National Restaurant Association Director of Technology and Innovation Policy Brennan Duckett. "Giant Wall Street banks shouldn't force you to take them along as an awkward third wheel in your special moments. They are making record profits by charging these huge hidden fees. It’s not fair and it's time for Congress to pass the Credit Card Competition Act."
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North Kentucky Tribune: Hidden credit card fees could put a damper on record spending expected for Valentine’s Day
Industry authority Merchant Payments Coalition estimates that “swipe” fees — which banks charge retailers to process credit and debit card transactions — could add more than $600 million to consumers’ receipts this month. With shoppers projected to spend an average of $188.81, “swipe” fees will account for approximately $4.27 (based on the typical 2.26% rate that Visa and Mastercard charge), about the cost of a standard Valentine’s Day greeting card.
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GV Wire: Credit Card Giants Drain Billions: Can Congress Take Action?
Credit card rewards — paid for by banks — represent a small percentage of the income from credit cards, said Doug Kantor, general counsel for the National Association of Convenience Stores (and MPC Executive Committee member) at the hearing. Rewards cost banks $41 billion annually compared to the $300 million collected from interest, consumer fees, and swipe fees. And, with an anticipated $16 billion in losses if the Competition Act were approved, Kantor said that amount would not be significant. “If the banking industry, which has the highest profit of any industry in the United States, bar none, can’t make that work, I don’t know what we can do for them,” Kantor said.
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CardRates.com: Legislators Tell Credit Card Issuers to Stay Out of Merchant Tip Jars
The Maryland legislature recently held a hearing to discuss legislation aimed at the issue. Doug Kantor, a member of the Merchants Payments Coalition and general counsel for the National Association of Convenience Stores, spoke at the hearing, highlighting the burden merchants face with interchange fees. “The merchant collects sales tax for the state, but interchange is taken out of the amount on the receipt, which creates a shortfall the merchant must cover,” Kantor said at the hearing.
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