Retailers warn on Visa, Mastercard fee hikes

Retailers call out Visa and Mastercard for fee hikes that could make inflation worse

NEW YORK, NY (CNN) — Businesses are blaming credit and debit cards for higher prices at some stores.

Credit card giants Visa and Mastercard raised their interchange rates, also called “swipe fees”, last month.

Merchants pay the fees to banks and credit card companies for transactions made with credit or debit cards.

The fees are not a flat rate.

They vary depending on several factors including the retailer, type of card, and transaction size.

Some retailers say that the increased fees will force them to raise prices on consumers, or stop accepting certain credit cards.

Visa and Mastercard claim that the fees help pay for rewards programs and banking services while also guaranteeing payment in cases of customer overdraft or fraud.

Categories: CNN, Industry Insider, News, Top Stories, US