The hidden cost of your points

Credit card swipe fees hit a record $198 billion in 2025, intensifying debate over who really pays for rewards programs

 Hyoung Chang/The Denver Post via Getty Images

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Every time someone swipes a credit card, a small fee flows from the merchant to the bank. Most shoppers never think about it. But a growing coalition of retailers, lawmakers, and academics argues the system quietly shifts money from poorer Americans to richer ones, and Congress may finally act.

Credit card swipe fees have climbed 70% since 2019 to $198 billion in 2025, according to the Nilson Report. The rise has been driven by higher consumer spending, declining cash use, and a fundamental change in the kinds of cards Americans are carrying, which increasingly include rewards that have to be paid for somehow. 

A market that keeps getting more expensive 

Not all credit cards cost merchants the same. A basic no-frills card might carry an interchange fee below 1.5%. A premium rewards card can run 2.1% or higher, which for some industries can totally eat up the net profit margin. And more and more consumers are turning to premium cards that have those........

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