Most of us have gotten used to leaving the house with just a card or a phone. It is quick, easy, and feels modern. But that convenience may be costing you more than you realize every single time you swipe.
A new report from the Merchants Payments Coalition says that credit card “swipe” fees have climbed as much as 80 percent since the pandemic. In 2025 alone, credit card companies collected more than $198 billion in these fees from businesses nationwide.
You Are Paying Those Fees, Not Just the Store
Here is the part that hits home. Many businesses (especially small ones) have had to pass those costs on to their customers. That means when you pay by card, you may pay a little more than the person in line who paid in cash. Some stores now show customers a side-by-side comparison: the card price versus the cash price.
Doug Kantor, General Counsel for the National Association of Convenience Stores and a member of the MPC Executive Committee, put it plainly. “Credit card swipe fees make just about everything Americans buy more expensive,” he said. “The impact on American families and small businesses is devastating.”
He called on Congress and the president to reform swipe fee rules, saying it is time to end what he called “the swipe fee ripoff.”
What You Can Do Right Now
The most direct way to avoid these fees is simply to pay with cash. According to PennLive, these swipe fees typically range from 1.5 to 3.5 percent per transaction. On a $100 purchase, that could mean up to $3.50 added to your tab without you ever noticing.
If carrying cash is not your style, there are a few digital options that may help:
- Venmo does not charge a transaction fee for online purchases.
- Google Pay typically does not charge a fee either, though your bank may charge one when you use it.
- Zeffy offers a fee-free option for certain purchases, though it is mostly used by nonprofits.
The places where cash tends to make the biggest difference are small businesses, restaurants, and salons. These service-oriented businesses often feel the pinch of swipe fees more than large retailers, and they are more likely to pass those costs along to you.
Nobody is saying you need to stuff your wallet with bills every time you leave the house. But keeping a little cash on hand (especially for smaller local shops) could quietly add up to real savings over time.