NACS and Rovertown recently partnered with retailers to educate consumers about the impact of swipe fees and the need for reform. While many Americans are facing rising costs on everyday goods, few realize that hidden credit card processing fees are a major contributor. The average U.S. household pays an estimated $1,100 annually in swipe fees—costs set by credit card networks, passed down to retailers and ultimately paid by consumers.
“Swipe fees are one of the biggest financial challenges facing our industry,” said Anna Ready Blom, strategic advisor at NACS. “They are the second-highest operating expense for convenience retailers and impact nearly every American, as half the country visits a convenience store daily. Unlike other costs, retailers can’t negotiate swipe fees, making them an unavoidable expense that consumers ultimately bear.”
Visa and Mastercard control about 83% of the U.S. credit card market, setting the fees that banks charge retailers for processing transactions. Because these networks prevent banks from competing on swipe fee pricing, retailers are forced to accept whatever rates are imposed. As a result, swipe fees have skyrocketed from $26 billion in 2010 to over $172 billion in 2023. With no competitive market to keep costs in check, the U.S. now has some of the highest card processing fees in the world, placing a growing financial burden on both retailers and consumers.
To help drive awareness and action, Rovertown partnered with two retailers in December 2024 to integrate swipe fee reform messaging into their mobile apps. Customers who clicked to learn more were directed to a NACS Grassroots page with a link to contact their congressional representatives. In just a few months, nearly 3,000 letters have been sent.
“Swipe fees are an invisible tax on every purchase, and most consumers don’t realize they’re paying it,” said Doug Yawberry, president at Weigel's. “By adding awareness messaging to our app, we’ve helped many people take action—proving that when customers understand the issue, they demand change.”
“Customers are often surprised to learn how much swipe fees impact them directly,” said Annie Gauthier, co-CEO at St. Romain Oil Company. “By raising awareness and driving action, we’re helping shine a light on this hidden cost that affects everyone.”
“Mobile apps are a powerful tool for engaging customers, and we saw an opportunity to support one of our industry’s most important initiatives,” said Jeffry Harrison, co-founder and president of Rovertown, and a member of the NACS Political Engagement Committee. “Convenience retailers work hard to keep prices low, but swipe fees make that increasingly difficult. We’re proud to be part of this effort and look forward to continuing our work with NACS and its members to drive awareness and reform.”
Join NACS for Day on the Hill March 11-12 in Washington D.C. to speak to your representatives and have your voice heard. NACS also offers resources and information on swipe fee reform.