Families shopping for costumes, candy, and decorations this Halloween will see a hidden cost in the form of credit card “swipe” fees. The Merchants Payments Coalition estimates that these processing fees will total more than $300 million this season.
Swipe fees are charges that banks and card networks apply to merchants for handling credit card transactions. On average, they represent 2.35 percent of each sale and can be among retailers’ highest operating costs after labor. Since most consumers pay with cards, the fees are typically factored into prices, affecting all shoppers regardless of how they pay.
According to the National Retail Federation, families are expected to spend an average of $114.45 on Halloween items this year, contributing to $13.1 billion in overall sales. The coalition calculates that swipe fees account for about $2.70 of that per household, which equals the cost of 18 pieces of candy from a standard bag.
As spending continues to rise, swipe fees are drawing attention in policy discussions. The proposed Credit Card Competition Act seeks to increase options for processing networks, which supporters say could enhance competition and potentially reduce costs for merchants and customers alike.
