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 are the costs that are added when we use or enter a credit card. It’s called a swipe fee and it hurts both consumers and small businesses.
Every time you pay with a credit card, the bank and card network take a percentage of the purchase. For every €100 spent, between €2 and €4 goes to them, before the store gets the rest. Most shoppers never notice. And with razor-thin profits in the retail and food industries, that 2% to 4% can be as much or more than the small business makes on sales.
By 2024, these swipe fees added a record $187 billion, or about $1,400 in additional costs for each household. Swipeflation is real. This partly explains why more and more stores now charge credit card fees or offer discounts for cash payments. 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 do not try to cheat their customers. They’re just trying to entice customers to use cheaper payment methods like cash or debit cards, which don’t have the same high swipe fees as credit card companies. After years of inflation, higher rents, higher labor costs and rising supply prices, they are just trying to stay afloat. About 92% of small business owners say their costs have increased since 2020, and rising costs in 2025 are still at the top of their list of concerns.
This holiday season, be careful about how you pay for your gifts to avoid “swipeflation.” (iStock)
The irony is that inflation is a boon to credit card company profits. As restaurants, groceries and household items become more expensive, card companies are collecting more money without offering anything extra in return. Picture your local cafe after a day of shopping. The cost of a basic meal has increased by about 40% since 2019 food and labor cost inflation. What used to be a $15 burger, fries and drink now costs $21. Families pay more at the counter, and credit card companies are leading the way because they take a percentage of every sale.
PROTECT YOUR DATA BEFORE THE HOLIDAY SHOPPING SCAMS ATTACK
Many consumers stick with credit cards because they want the rewards. Airline miles, hotel points or cash back can feel like extras. But research shows that the credit card rewards game only works well for the very highest earners. Considering how built-in swipe fees increase the cost of almost everything consumers buy, most of us lose between $300 and $500 every year, even after counting credit card rewards.
CLICK HERE FOR MORE FOX NEWS ADVICE
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 charges. Sometimes it’s on a sign at check-out; sometimes it’s at the bottom of the bill. Consider taking advantage of the discounts merchants offer for cash or card payments. If the company doesn’t offer a discount, you can ask them to consider this option in the future. Otherwise they’ll probably build the swipe fee into the cost of everything, even if you pay with cash.
CLICK HERE TO DOWNLOAD THE FOX NEWS APP
You can also apply these tips to: Giving on Tuesday. The same 2% to 4% swipe fees also apply to online donations made with credit cards. Using a debit card or sending money directly from a bank account will help your donation go further.
Millions of Americans will go through their cards without a second thought this Black Friday. Be an informed consumer and know before you swipe. Choosing how you pay can be just as important as choosing where you shop. Behind all these transactions is a small business trying to keep its doors open and prices reasonable for shoppers. Understanding swipeflation and adjusting the way you pay can make a real difference to both your budget and your community.
