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Tariffs may be an inflation worry but so are credit card processing fees, some say

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          🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source
Credit card processing fees cost American households an average of $1,100 annually and are expected to continue rising unless Congress acts, some say.
The article from USA Today discusses the impact of credit card processing fees on inflation and small businesses. It highlights how these fees, often referred to as "swipe fees," are charged by credit card companies to merchants for each transaction. These fees have been rising, contributing to higher costs for businesses, which in turn pass these costs onto consumers, thereby fueling inflation. The piece notes that small businesses are particularly affected as they have less negotiating power with credit card companies compared to larger corporations. There's a growing call for regulatory intervention to cap these fees, with some advocating for legislative measures to reduce the burden on merchants. The article also mentions that while credit cards offer convenience and rewards, the hidden costs are significant, prompting discussions on alternative payment methods and potential reforms in the payment processing industry.

Read the Full USA Today Article at:
[ https://www.usatoday.com/story/money/personalfinance/2024/12/09/credit-card-processing-fees-inflation/76713979007/ ]