Swipe fees continue to rise and could cost consumers well over $20 billion this holiday season, the Merchants Payments Coalition (MPC) said in a press release.

“Inflation is coming down but swipe fees keep going up, taking a bigger slice out of what it takes to put presents under the tree,” MPC Executive Committee member and National Retail Federation Chief Administrative Officer and General Counsel Stephanie Martz said. “With swipe fees higher here than in other countries, our children get fewer presents for the money than kids in Great Britain, France or even China. The best present Congress can give children this year is passage of the Credit Card Competition Act.”

Consumers are expected to spend an average of $902 during the November-December holiday season for a total as high as $989 billion, according to NRF. Based on the average 2.26% rate for Visa and Mastercard, that would include just over $20 in swipe fees for the average family, said MPC.

Independent payments consulting firm CMSPI estimates that 85% of holiday purchases will be made with credit or debit cards or digital wallets and that swipe fees will total at least $20 billion this year even after allowing for cash purchases. That’s up from $18.6 billion last year, according to MPC.

With either figure, “swipe fees are most merchants’ highest operating cost after labor throughout the year and too much to absorb, driving up prices they have to charge their customers. Swipe fees are up 50% since the pandemic and hit a record $172 billion last year, costing the average family over $1,100,” said MPC.

The holiday impact of swipe fees comes as the Credit Card Competition Act is pending in Congress. NACS members are encouraged to reach out to their members of Congress and ask that they support the Credit Card Competition Act. NACS makes it easy for retailers and suppliers to send a message to their legislators via the NACS Grassroots Portal.