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Black Friday is the busiest shopping day of the year, and most of us approach it with a plan. We hunt for deals, compare prices and try to stretch our dollars a little further. What few people think about is the cost that gets added at the very moment we tap or insert a credit card. It’s called a swipe fee, and it hurts consumers and small businesses alike.
Every time you pay with a credit card, the bank and the card network take a percentage of the purchase. For each $100 spent, anywhere from $2 to $4 goes to them even before the store gets the rest. Most shoppers never notice. And with razor-thin profits in retail and food industries, that 2% to 4% can be as much or more than the small business makes on the sale.
In 2024, these swipe fees added a record $187 billion total, or about $1,400 in extra costs for every household. Swipeflation is real. That helps explain why more stores now add credit card fees or offer discounts for paying with cash. A recent WalletHub survey found that 80% of consumers reported paying a surcharge on a credit card purchase in the past year.
KURT ‘THE CYBER GUY’ KNUTSSON’S TIPS FOR SAFE HOLIDAY SHOPPING
Shop owners and restaurateurs are not trying to nickel-and-dime customers. They’re just trying to entice customers to use lower-cost forms of payment like cash or debit, which don’t come with the same high swipe fees that credit card companies charge. After years of inflation, higher rent, increased labor costs and rising supply prices, they are just trying to stay in business. About 92% of small business owners say their costs have increased since 2020, and rising costs still top their list of concerns in 2025.
The irony is that inflation is a boon for credit card company profits. As restaurants, groceries and household goods get more expensive, card companies collect more money without offering anything additional in return. Picture your local café after a day of shopping. The cost of a basic meal has climbed about 40% since 2019 due to inflation in food and labor costs. What used to be a $15 burger, fries, and drink now costs $21. Families pay more at the counter, and credit card companies come out ahead because they collect a percentage of every sale.
PROTECT YOUR DATA BEFORE HOLIDAY SHOPPING SCAMS STRIKE
Many consumers stick with credit cards because they want the rewards. Airline miles, hotel points or cash back can feel like a perk. But research shows that the credit card rewards game only works out well for the very highest earners. When you factor in how built-in swipe fees increase the cost of almost everything consumers buy, most of us actually lose between $300 to $500 each year even after counting credit card rewards.
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There is good news. Consumers have more control over these costs than they might think, which could come in handy during the biggest shopping season of the year. A few small changes can help you protect your wallet and support the local businesses you care about.
First, take a moment to read the merchant’s policy on credit card fees. Sometimes it’s on a sign at check-out; sometimes it’s at the bottom of the bill. Consider taking advantage of discounts merchants offer when paying with cash or debit. If the business doesn’t offer a discount, you might ask them to consider that option in the future. Otherwise, they are probably building in the swipe fee into the cost of everything, even if you pay with cash.
You can also apply these tips on Giving Tuesday. The same 2% to 4% swipe fees apply to online donations made with credit cards as well. Using a debit card or sending money directly from a bank account helps your donation go further.
Millions of Americans will swipe their cards without a second thought this Black Friday. Be an informed consumer and know before you swipe. Choosing how to pay can be just as important as choosing where to shop. Behind every one of those transactions is a small business trying to keep its doors open and keep prices reasonable for shoppers. Understanding swipeflation, and adjusting how you pay, can make a real difference for both your budget and your community.
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