Swipeflation News

Newsline Local op-ed: Don’t Let the Credit Card Grinch Steal Your Year-End Charitable Contributions

Wed, 08 Apr 2026 16:09:45 GMT

Don’t Let the Credit Card Grinch Steal Your Year-End Charitable Contributions

DEC 30, 2025

December is when Americans do the most good in the shortest amount of time. Nearly one-third of all charitable giving happens this month, with 10 percent occurring in the last three days. Nonprofit leaders will tell you that the final week of the year can determine whether they meet their annual goals. If you’re looking to maximize tax savings for the year, it’s important to get those contributions in before January 1.

But as donors rush to support shelters, food banks and their alma maters, many are unaware that a quiet toll is taken the moment they enter their credit card number. Credit card swipe fees are skimmed from every donation, reducing its impact before it even reaches the charity.

The math is straightforward. A typical swipe fee runs between 2 and 4 percent. A $500 year-end donation may deliver only $480 to the organization. Multiply that by millions of December donations, and billions of dollars meant for charitable work are quietly diverted to credit card companies. Of course, these fees are hidden in the cost of almost everything you buy as well. Last year, swipe fees added up to a record $187 billion across the economy, or about $1,400 in hidden costs per household.

Unlike businesses, though, nonprofits cannot raise prices to make up the difference. They simply receive less. And that loss matters. December is when food banks stock up for winter, when shelters plan for the coldest months, and when hospitals and research foundations make budget decisions for the year ahead.

For many charities, margins are already thin after years of higher rent, higher wages, and higher supply costs. The majority of local nonprofits that often have the most impact in a community are small, with budgets under $50,000 annually, and credit card swipe fees feel like an unfair tax on their good work. When swipe fees bite into donations, these community lifelines pay the price.

A few percentage points skimmed off the top of every online donation also means fewer meals, fewer beds or fewer services for the communities that rely on them.

Credit card rewards are often cited as the reason people continue to use plastic for donations. Yet research shows the rewards system only benefits the highest earners. When the cost of swipe fees built into everyday prices is taken into account, most households actually lose money each year, even after counting the rewards. And when the goal is charitable giving, the trade-off is even starker. Your rewards program may net you pennies while the charity you chose receives fewer dollars.

The good news is that donors can prevent this loss with a simple change. Use a debit card or direct bank transfer instead of a credit card. Debit transactions usually carry far lower swipe fees and bank transfers often carry none at all. Many charities now encourage these methods because the savings translate directly into more effective giving.

If you plan to make year-end contributions, take a moment to check the charity’s website for its preferred payment options. Some offer “fee-free” donation tools or show you how much more of your gift will reach the organization when you avoid credit cards. The difference can be substantial.

Generosity is one of America’s strongest traditions. It deserves to be treated with care. As you make your final contributions for 2025, don’t let the credit card Grinch shrink the value of your gift. A small change in how you give can make a large difference in what your donation achieves.

Harned is a small business advocate and former executive director of the National Federation of Independent Business Small Business Legal Center. For more information on credit card swipe fees and how to avoid them, visit swipeflation.com.

The Oklahoman op-ed: Swipe fees turn holiday returns into losses for small retailers

Wed, 08 Apr 2026 16:05:36 GMT

Swipe fees turn holiday returns into losses for small retailers

This is not about ending returns or shaming shoppers. Returns will always be part of retail. It is about understanding how the payment method affects the business on the other side of the counter.

Karen Harned, Guest columnist

Jan. 17, 2026, 6:30 a.m. CT

January is the cruelest month for small retailers.

After the decorations are packed away, shop owners brace for the annual wave of returns: sweaters that didn’t fit, electronics that weren’t needed, gifts that looked better in December than they did in January. Returns are a normal part of retail, and most small businesses accept them as the cost of keeping customers happy.

What many shoppers don’t realize is that when a purchase is returned, the credit card swipe fee the business already paid is not refunded. That money is already gone.

Every time a customer pays with a credit card, banks and card networks take their cut, usually 2% to 4% of the sale, before the merchant ever sees a dime. When an item is returned, the business refunds the full purchase price, but the swipe fee stays with the credit card companies. The sale disappears, yet the fee the business had to pay remains.

Consider a $200 jacket bought in December and returned in January. The store may have paid $6 or more in swipe fees. When the customer gets their refund, the business is left holding the jacket and absorbing the fee. Multiply that by dozens or hundreds of returns, and January turns from a slow month into a costly one.

Most independent retailers operate on margins of less than 5% in a good year. A single swipe fee can equal their entire profit on a sale. When that sale is reversed, the business does not just break even. It loses money.

This real, out-of-pocket loss for the business also has real impacts across the economy. That loss comes straight out of payroll, rent or inventory. In Oklahoma alone, more than 68,000 people work in these stores.

Large retailers can spread those losses across thousands of stores and billions in sales. Small businesses cannot.

Holiday returns and the ensuing swipe fee losses also help explain why more stores now shorten return windows, charge restocking fees or offer store credit instead of refunds. These policies are often blamed on retailers being stingy or unfriendly. In reality, they are just responses to a system that penalizes businesses for accommodating customers.

Swipe fees are designed to be invisible. They total more than $187 billion a year, or roughly $1,400 per household, hidden in the cost of nearly everything Americans buy. Inflation has only made the problem worse. As prices rise, credit card companies collect more money automatically, even though they provide no additional service.

The Oklahoman's political cartoons offer perspectives on the state's political scene.

Consumers are not immune to this system either. Credit cards feel effortless, and rewards programs make them tempting. But research shows that rewards only actually benefit the highest earners. Once the cost of swipe fees baked into prices is taken into account, most households lose money overall.

For small businesses, however, the damage is immediate.

There is an easy way for consumers to help.

When possible, consider using cash, a debit card or a direct bank transfer, especially at small businesses. Debit transactions typically carry much lower fees, and bank transfers often carry none at all. If there is a chance you might return an item, that choice matters even more. A cash, debit or bank-based transaction allows the return without leaving the business in the red.

This is not about ending returns or shaming shoppers. Returns will always be part of retail. It is about understanding how the payment method affects the business on the other side of the counter.

A system that charges businesses even when a sale is undone deserves more scrutiny. Until that changes, consumers can play a role by making small choices that have outsized effects.

Understanding how swipe fees work, especially during return season, is one step toward a fairer system for the local shops that anchor our communities. For more information on credit card swipe fees and how to avoid them, go to swipeflation.com.

Karen Harned is a small business advocate and former executive director of the National Federation of Independent Business Small Business Legal Center.

FoxNews.com oped: This Black Friday, don’t let ‘Swipeflation’ swipe $1,400 of your holiday cash

Wed, 26 Nov 2025 20:10:18 GMT

FoxNews.com op-ed: This Black Friday, don’t let ‘Swipeflation’ swipe $1,400 of your holiday cash

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.

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.

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.

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.

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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.

Karen Harned is a small business advocate and former executive director of the National Federation of Independent Business Small Business Legal Center. For more information on credit card swipe fees and how you can avoid them, visit her website at swipeflation.com.

Small business leader warns swipe fees are squeezing local stores

Wed, 12 Nov 2025 20:12:24 GMT

Small business leader warns swipe fees are squeezing local stores

(The Center Square) – A longtime small business advocate has launched a new website to help store owners explain credit card surcharges to their customers.

Karen Harned, who led the National Federation of Independent Business Small Business Legal Center for 20 years, launched Swipeflation.com to address the rising costs of credit card fees.

The site provides businesses with information to use at checkout, explaining why customers may see new fees when paying with credit cards.

“Most customers don’t realize that a percentage of every credit card purchase goes to big banks and card companies instead of the local store they’re trying to support,” Harned said in a news release. “If you want to help small businesses, or avoid these fees yourself, paying with cash is one way to do it.”

Read there full story here .

Small Business Leader Launches Swipeflation.com to Help Customers understand the costs of Credit Card Fees

Tue, 11 Nov 2025 20:16:41 GMT

Small Business Leader Launches Swipeflation.com to Help Customers understand the costs of Credit Card Fees

FOR IMMEDIATE RELEASE:

November 11, 2025

CONTACT:

Carlton Carroll

carlton.carroll@lamontst.net

850-445-0988

80% of shoppers report paying credit card payment surcharges

Washington, D.C. – A surge in businesses asking customers to pay a fee for using credit cards has inspired a new website—Swipeflation.com—to help small businesses explain why it’s happening and expose this hidden tax to their customers.

The site was launched by Karen Harned, a longtime small-business advocate who led the National Federation of Independent Business Small Business Legal Center for 20 years. Throughout her career, Harned heard complaints from owners about the credit card swipe fees they were forced to pay. Now, more businesses are adding credit card surcharges to help cover these costs. According to a WalletHub survey , 80% of consumers report paying credit card surcharges in the last year.

“Most customers don’t realize that a percentage of every credit card purchase goes to big banks and card companies instead of the local store they’re trying to support,” said Harned, who now runs a small consulting firm. “If you want to help small businesses, or avoid these fees yourself, paying with cash is one way to do it.”

Harned said small business owners aren’t profiting from the fees but are trying to offset the squeeze of high inflation and the 2–4% swipe fees they pay to credit card companies on every transaction.

About 92% of small business owners say their costs for supplies or services have risen since 2020, and 71% report at least a 20% increase, according to Business.org . With razor-thin margins in retail, food service, and other sectors, Harned said swipe fees can exceed what the owner makes on a sale.

“The cost of everything has gone up for business owners, but the ability to raise prices is limited,” Harned said. “Small businesses aren’t trying to nickel-and-dime anyone. They’re simply being upfront about swipe fees so customers can decide whether to pay with a card or consider paying with cash.”

To add insult to small businesses’ inflation injury, when prices rise, so do swipe fee revenues for credit card companies. Nationwide, total swipe fees topped $180 billion last year—a record—equaling more than $1,400 per household and up 70% since before the pandemic.

The campaign provides resources including:

Signage and messaging templates for small businesses to place at checkout and help customers understand swipe fees.

Shareable social media graphics.

Swag with the website name and the opportunity to log on and learn more.

Harned hopes to grow a coalition of small business associations and local business leaders to support her effort.

“No one wants an upset customer who is being asked to pay a fee to use their credit card. What they want is to give them a better understanding of why they are asking, and how cash payments are a better alternative to keep the local merchant in business,” she said.

For more information, visit Swipeflation.com .