Black Friday, the busiest shopping day of the year for many Americans, is often associated with the hunt for the best deals, price comparisons, and strategies to stretch holiday budgets. However, few shoppers consider the hidden costs that quietly add up to hundreds of dollars in additional expenses. These costs are not always visible, but they are real and growing rapidly. According to recent data, credit card swipe fees reached a record high of $187 billion in 2024, marking a significant burden for both consumers and small businesses.
Every time a consumer uses a credit card for a purchase, a portion of the transaction is taken by the credit card company and the card network. For every $100 spent, anywhere from $2 to $4 goes to these entities before the merchant receives the remaining amount. This percentage is consistently increasing, and its impact is particularly severe for small businesses that operate with razor-thin margins. In many cases, these swipe fees surpass the profit margin of a typical small business transaction, making it increasingly challenging for retailers and restaurants to remain profitable. As a result, many businesses now add credit card processing fees to their transactions or offer discounts for those who pay with cash or debit cards.
Consumers are also starting to feel the effects of these hidden fees. A recent survey by WalletHub found that 80% of Americans reported paying a surcharge on a credit card purchase in the past year, highlighting the widespread recognition of these additional costs. For some, the idea of paying an extra fee might be unsettling, but for small business owners, it’s a necessity. They are not attempting to nickel-and-dime customers but rather trying to manage their rising operating costs, which include soaring rent, increased labor expenses, and inflated supply prices.
The financial strain on small businesses has been exacerbated by broader economic challenges, including persistent inflation and the overall cost-of-living crisis. According to a survey of small business owners, 92% said their costs have increased since 2020, and rising costs remain their primary concern in 2025. This situation is further complicated by the fact that credit card companies benefit from inflation. As the prices of goods and services continue to rise, the value of each transaction increases, which in turn boosts the income that credit card companies receive as a share of every sale.
Despite these challenges, consumers are often drawn to credit cards for the rewards they offer, such as airline miles, hotel points, or cash back. However, research suggests that these rewards are only beneficial for the highest income earners. The hidden costs of credit card swipe fees, which are applied to almost every transaction, tend to outweigh the benefits of rewards, leaving most consumers with a net loss in the long run. The average consumer may lose between $300 to $500 annually, even when factoring in credit card rewards, highlighting the need for greater awareness and control over these financial decisions.
There is, however, a way for consumers to mitigate these costs and support local businesses. One approach is to review the merchant’s policy on credit card fees before making a purchase. Some stores display this information at the checkout or at the bottom of the receipt. For those who prefer to pay with credit cards, they can consider taking advantage of any discounts offered for using cash or debit. If such discounts are not available, consumers might consider advocating for their availability, as this could help reduce the overall impact of credit card fees. Additionally, the article encourages shoppers to be mindful of their payment choices, especially during the busy holiday shopping season, as these decisions can have a lasting impact on both their budgets and the local business community.