For the first time in two years, Visa and Mastercard raised their credit card fees for merchants in April 2022.
Delayed by the pandemic, the move by the two largest payment networks to raise “swipe fees” was criticized by retailers. Businesses claim that hiking interchange fees, which are paid by merchants on each transaction made with a credit or debit card, could worsen inflation and pinch consumers because businesses could opt to pass the cost of higher interchange fees onto consumers.
Both payment networks raised fees on certain types of transactions and reduced fees for transactions in certain categories. Retailers say the reductions are narrow and do not balance out the increases in processing fees.
Most merchants need to accept credit card payments, which makes credit card processing fees a cost of doing business. For more on how much those costs can be — and how they vary among credit card companies — we’ve collected all the latest data.
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Source: The Ascent, A Motley Fool Service
By: Lyle Daly and Jack Caporal
