WASHINGTON — Credit and debit card “swipe” fees hit a record $198.25 billion in 2025, increasing pressure on policymakers and industry groups and sparking renewed calls for legislation to reduce rising transaction costs, according to the Merchants Payments Coalition.
The total shows a 5.9% increase from $187.2 billion in 2024 and an 80% jump since the pandemic, highlighting the growing financial burden on merchants. Since 2009, when the coalition started tracking the data, swipe fees have risen 219% from $62.1 billion.
“Credit card swipe fees make just about everything Americans buy more expensive,” said Doug Kantor, an MPC executive committee member and general counsel at the National Association of Convenience Stores. “The impact on American families and small businesses is devastating.”
Credit card fees still make up the majority of the total. Fees associated with Visa and Mastercard alone reached $118.8 billion in 2025, up from $111.2 billion the previous year and more than quadruple the levels in 2009. Overall, credit card swipe fees across all brands totaled $157.8 billion, while debit card fees increased to $40.5 billion.
For merchants, swipe fees are among the biggest operating costs after labor. Industry estimates indicate that these costs amount to over $1,200 each year for the average U.S. household due to higher retail prices.
Fee rates have also gone up. The average swipe fee for Visa and Mastercard credit cards increased to 2.36% of transaction value in 2025, up slightly from 2.35% in 2024 and continuing a long-term upward trend from 2.02% in 2010. The two networks control more than 80% of the market and set fee structures for issuing banks.
The latest data shows growing support in Washington for the proposed Credit Card Competition Act, a bipartisan bill aimed at boosting network competition. Sponsored by President Donald Trump and led by Senators Roger Marshall, R-Kan., and Dick Durbin, D-Ill., the legislation would require large banks with at least $100 billion in assets to process credit card transactions over at least one independent network, in addition to Visa or Mastercard.
Supporters contend that the change would foster competition in fees, security, and service, potentially saving merchants and consumers over $17 billion each year. The bill has received backing from almost 2,000 companies, along with a wide coalition of consumer, labor, and small business groups.
As debate heats up, retailers and merchant groups are urging Congress to act, depicting swipe fee reform as a crucial way to lower costs throughout the economy and increase price transparency for consumers.
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