Highest Swipe Fees in the World — And Going Higher
U.S. swipe fees are the highest in the industrialized world – more than 7 TIMES the maximum allowed charge in Europe (0.3%).
Swipe fees have more than doubled over the past decade due to a lack of competition.
Swipe fees are most merchants’ highest operating cost after labor, and drive up prices paid by consumers. This costs the average American family over $1,000 a year at a time they can least afford it. That’s a huge hidden card fee, far higher than the annual fee for even the fanciest premium credit card.
Visa and Mastercard have captured 80% of the payments marketplace, dictating the fees that small businesses must pay – with small Main Street merchants hit the hardest, paying higher rates than larger competitors.
“ This legislation will help inject much-needed competition into credit card processing. 92 percent of small business owners said that they want a choice when it comes to processing their credit card transactions. Right now, they don’t have that. What they want is a level playing field.”