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It’s Black Friday It’s the busiest shopping day of the year, and most of us go with a plan. We hunt for deals, compare prices and try to stretch our dollars a little. Few people think that it is an additional cost at the right time when applying or applying for a credit card. It’s called swiping money, and it hurts consumers and small businesses alike.
Every time you pay with a credit card, bank and card network take a percentage of the purchase. For every $100 spent, anywhere from $2 to $4 goes to them even before the store gets a break. Most of the buyers have never seen it. And with razor-might profits in retail and food industries, that 2% to 4% can be average or more for a small business that makes sales.
By 2024, these swipe fees added a record $187 billion in total, or about $1,400 in additional spending for every household. Swipeflation is real. That helps explain why many stores now add credit card fees or offer discounts for paying with cash. A recent study by Wallethub found that 80% of consumers report paying a fee on a credit card purchase in the past year.
Kurt ‘Cyber Guy’ Knuttsson’s tips for safe holiday shopping
Store owners and resellers aren’t trying to nickel-and-dime customers. They’re just trying to entice customers to use low-cost forms of payment like cash or debit, which don’t come close to the same high interchange fees that credit card companies charge. After years of rising prices, high rents, rising labor costs and rising prices, they are just trying to stay in business. Nearly 92% of small business owners say their costs have increased since 2020, with rising costs continuing to top their list of concerns in 2025.
This holiday season, be careful how you pay for your gifts to avoid being ‘converted.’ (Stock)
The irony is that inflation is the credit card company’s profit. As restaurants, groceries and household goods are more expensive, card companies collect more money without giving anything in return. Check your local photo after the day of shopping. Basic food costs have risen nearly 40% since 2019 as a result inflation in food and labor costs. What used to be a $15 burger, fries, and drink now costs $21. Families pay more at the counter, and credit card companies come out ahead because they collect a percentage of every sale.
Protect your data before the holiday shopping strike
Many users stick with credit cards because they want rewards. Airline miles, hotel points or cash back can feel like a perk. But research shows that the credit card rewards game only works for high earners. When you see that the swipe money is built-in built-in costs are built away from almost all the money that consumers buy, most of us lose between $300 to $500 a year even after calculating credit card rewards.
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There is good news. Consumers have more control over these costs than they might think, which can come in handy during the biggest shopping season of the year. A few small changes can help you Protect your wallet and support local businesses you care about.
First, take a moment to read the merchant’s policy on credit card fees. Sometimes it is a sign of an exit; Sometimes even the bottom of the bill. Consider taking advantage of discount opportunities that retailers offer when you pay by cash or debit. If the business does not offer a discount, you can ask them to consider that option in the future. Alternatively, they may create a swipe fee on the cost of everything, even if you pay in cash.
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You can also use these tips Giving Tuesday. The same 2% to 4% swipe fee applies to online donations made with credit cards. Using a debit card or sending money directly to a bank account helps your donation continue.
Millions of Americans will swipe their cards without a second thought on Black Friday. Be an informed shopper and know before you swipe. Choosing to pay can be just as important as choosing where to shop. Behind every one of those professionals is a small business trying to keep its doors open and keep its prices reasonable for consumers. Understanding swipeflation, and changing how you pay, can make a real difference to your budget and your community.
