This post may contain affiliate links; please read our advertiser disclosure for more information.Two of the most popular credit card processors, Visa and Mastercard, announced plans to raise swipe fees in 2021. The fee increase is mainly for online credit-card purchases and was supposed to go into effect in April, about a year ago. However, those plans were delayed due to the pandemic.Now the increase in swipe fees is expected to go into effect this month. These Visa and Mastercard fee increases will apply to many online credit card purchases. Mastercard will also raise fees on more than a dozen categories of in-store purchases.Earlier this week, the National Retail Federation (NRF) urged the payment providers to cancel the scheduled swipe fee increases. They joined both Republican and Democratic members of Congress, saying higher fees would add to inflation.On Friday, Senators Roger Marshall, R-Kan., and Richard J. Durbin, D-Ill., and Representatives Beth Van Duyne, R-Texas, and Peter Welch, D-Vt., sent a letter to Visa and Mastercard asking that they withdraw plans to implement a package of swipe fee increases this month.Visa, Mastercard and the banks that issue their cards charged retailers $77.5 billion in credit card swipe fees last year and $28.1 billion in debit card swipe fees, the letter said. Swipe fees for all types and brands of cards totaled $137.8 billion in 2021, more than double the amount 10 years earlier, according to the Nilson Report. Swipe fees, which average 2.22 percent of the transaction amount for Visa and Mastercard credit cards, are most merchants’ highest operating cost after labor.According to the NRF, the fees drive up consumer prices, amounting to more than $700 a year for the average American family. Visa and Mastercard control roughly 80% of the credit card market.Disclosure: Miles to Memories has partnered with CardRatings for our coverage of credit card products. Miles to Memories and CardRatings may receive a commission from card issuers. Featured: Chase Freedom Unlimited – Extra Cash Back Bonus!Chase Freedom Unlimited has an increased offer right now. Normally it earns 1.5% back on everyday purchases, but right now you can earn an additional 1.5% back in all categories on up to $20K spend the first year. There is no annual fee.Additional Card Benefits:With the extra 1.5% cash back through the welcome offer you can earn (on up to $20K spend):6.55% cash back on travel purchased through Chase Ultimate Rewards4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service3% cash back on all other purchases0% Intro APR for 15 months from account opening on purchasesLearn more about this card and its features!Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities.


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