Swipe Fees Hit Record $198.25 Billion, Renewing Calls for Reform
Credit and debit card swipe fees hit record of $198.25 billion in 2025, according to a new report from the Merchants Payments Coalition, prompting renewed calls from the White House and members of Congress for reforms aimed at increasing competition and lowering costs for businesses and consumers.
The coalition said the continued rise in interchange fees—charged by banks and card networks such as Visa and Mastercard to process transactions—has made them one of the highest operating expenses for merchants, second only to labor in many cases. These costs are typically passed along to consumers through higher retail prices, with estimates suggesting the average U.S. family pays about $1,200 more per year as a result.
Why Swipe Fees Hit Record Highs in 2025
The latest total represents another jump from prior years, continuing a steady upward trend. Swipe fees reached $187.2 billion in 2024, up from $172 billion in 2023, and have increased about 70 percent since the pandemic, according to industry data cited by the coalition. The fees typically range from about 2 percent to 4 percent per transaction, with Visa and Mastercard controlling more than 80 percent of the market and largely setting rates across issuing banks.
In its press release, the Merchants Payments Coalition pointed to growing bipartisan attention on the issue, including support for the proposed Credit Card Competition Act, which would require large banks to offer merchants a choice of processing networks. Advocates argue that added competition could help lower fees and ease pressure on both retailers and consumers.
Merchant groups say the current system limits negotiation and transparency, particularly for small businesses that lack the scale to secure lower rates. As digital and card-based payments continue to dominate transactions, the coalition warned that without legislative action, swipe fees will likely continue to climb, further impacting pricing across the retail economy.
