Rising swipe fees could cost consumers nearly $20 billion or more in higher prices this holiday season, the Merchants Payments Coalition (MPC) said this week.

“Consumers are expected to spend an average $890 during the November-December holiday season for a total as high as $1.02 trillion, according to the National Retail Federation. Based on the average 2.35% rate for Visa and Mastercard, that would include about $21 in swipe fees for the average family—enough to buy a Barbie doll or Lego set, the two most-popular holiday toys, or a ham or turkey for a holiday dinner,” the MPC said.

While exact figures are difficult to calculate because not all purchases are made with credit cards, independent payments consulting firm CMSPI estimates that 89% of holiday spending will be done with credit or debit cards or digital wallets this year and that swipe fees will total at least $19.9 billion even after allowing for cash purchases. That’s up from $19 billion last year.

“These credit card fees are so high they’re swiping a Lego set or Barbie doll from under the tree of the average American family. Swipe fees increase inflation and make life less affordable for everyone. It's time for Congress to stop the card companies' humbug and give Americans some relief from fees,” MPC Executive Committee member and NACS General Counsel Doug Kantor said.

Swipe fees are most merchants’ highest operating cost after labor throughout the year and too much to absorb, driving up prices for consumers even when they use cash. Swipe fees have risen 70% since the pandemic and reached a record $187.2 billion last year, costing the average family nearly $1,200 over the course of a year.

NACS is continuing to fight for the passage of the Credit Card Competition Act to inject long overdue competition in the credit card market, requiring Visa and Mastercard to compete on fees and services. Find NACS swipe fee resources here, and make your voice heard at the annual NACS Day on the Hill, March 17-18, in Washington, D.C.