Rapidly growing, swipe; fees that credit card (CC) networks and banks charge merchants to process transactions could cost consumers more than $750 million this Mother’s Day, the Merchants Payments Coalition said.
“Credit card companies are swiping two flowers out of Mom’s bouquet this Mother’s Day,” MPC Executive Committee member and National Association of Convenience Stores, US- Senior Vice President of Government Relations Lyle Beckwith said. “Families are trying to give mothers a special day, but the credit card industry sees Mother’s Day as just another chance to dig into consumers’ pockets with hidden fees. It’s time for Congress to stand up for moms by passing the Credit Card Competition Act.”
The National Retail Federation’s annual survey found that consumers celebrating the May 12 holiday plan to spend an average $254 per person for a total of $33.5 billion in the USA.
Based on those numbers and the 2.26 percent average swipe fee for Visa and Mastercard credit cards, MPC estimates that $5.74 per shopper will go to banks and card networks rather than the merchant when customers pay by credit card. For the year as a whole, the average family paid an additional $1,102 to cover swipe fees last year in US.
MPC estimates that the total would include $158.2 million in swipe fees on $7 billion in jewelry, $133.3 million on $5.9 billion in special outings like dining out, $79.1 million on $3.5 billion in electronics, $72.3 million on $3.2 billion in flowers and $24.9 million on $1.1 billion in greeting cards.
Swipe fees can vary widely, starting at 18 cents on the average $8.15 expected to be spent on greeting cards or 54 cents for the average $23.91 for flowers but amounting to $1.80 on an $80 bouquet of carnations widely considered the official; Mother’s Day flower.
Special outings are expected to average $44.97, which would mean swipe fees of $1.02, but Mother’s Day brunch with drinks and tip can easily run $200 for a family of four, including swipe fees of about $5 – and can be far more at high-end restaurants in major cities.
Consumers plan to spend an average $53.12 on jewelry, which would mean swipe fees of $1.20, but swipe fees would amount to $9 on a $400 Mom, diamond and gold necklace and could be hundreds of dollars on high-end fine jewelry.
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