Retailers claim credit card swipe fees are driving inflation

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Retailers claim credit card swipe fees are driving inflation
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Justin Boggs is a writer for the E.W. Scripps company. Justin covers anything from politics to sports and entertainment.

Although inflation has eased since peaking in 2022, retailers say that credit card swipe fees are not helping to lower inflation. The National Retail Federation sent a letter this week to the Senate Judiciary Committee urging congressional action to limit credit card swipe fees.What are swipe fees?For every transaction involving a credit card, a business is charged a fee. A congressional report suggests that in 2022, credit card companies collected $160 billion in swipe fees.

“The current credit card system has been designed by the Visa-Mastercard duopoly to maximize profits for the networks and the nation’s largest credit card issuers while forcing merchants and their customers to pay excessive fees without any recourse to help bring these costs under control,” NRF Senior Vice President for government relations David French said. “This market failure requires action by Congress.

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