Credit card swipe fees are adding to the inflationary pain felt by small businesses and consumers alike—leading to a rise in cash payment requests.

Real Stories from Main Street: Swipe Fees Impact

“Swipe fees have cut deeply into our profits, forcing us to raise prices just to stay afloat. It’s a constant struggle to keep serving our community.”

The Problem

Consumers are ultimate victims

More businesses now charge their customers fees when they pay using a credit card or offer discounts when they use cash. A WalletHub survey recently found that 80% of consumers report paying these credit card surcharges in the last year. 

Businesses not benefitting

Shop owners and restaurateurs are not trying to nickel-and-dime customers with these fees; they’re just trying to entice customers to use lower-cost forms of payment like cash or debit.

High cost for small businesses

Small businesses have to pay swipe fees when you use your credit card. Every time you swipe a card, 2–4% of the sale goes straight to big banks and card networks like Visa and Mastercard.

Problem increasing

Swipe fees totaled a record $180 billion last  year. That’s more than $1,400 per household, up 70% since before the pandemic. Swipeflation is real.

Compounds inflation

This is on top of years of rising prices due to inflation. Rising costs for everything from labor to supplies to rent and utilities have squeezed the margins of small businesses because they have less capacity to absorb inflation than larger companies. 

Swipe Fees Hurt Small Businesses

Thin margins destroyed

After years of inflation, many small businesses have seen their margins narrow. For many small businesses, like restaurants and retailers, swipe fees often equal or exceed their entire profit margin on a sale. 

Tough choices

Small shops must either cut wages and hours or raise prices, making it harder to compete.

No leverage to negotiate

Unlike some big businesses, small businesses can't negotiate for lower rates with credit card companies.

Swipe fees are a hidden tax that strangles Main Street and inflates prices for every household in America.

Partner Organizations

Resources

8.5" x 11" mini poster to hang up or hand out.

Go cardless! cash register placcard. Each is 5" x 2", 7/page.

Swipeflation shirt with url on back.