Exorbitant credit card swipe fees are already hurting Rhode Island’s businesses.
When you use your credit or debit card to pay for a service or product, the business does not receive the entire payment. Credit card processing costs about $0.04 per transaction. The credit card companies charge a “swipe fee” for every transaction, usually in the range of 2-4% of the total sale. Businesses have to either eat the lost revenue or pass the fee along to their customer. That’s money immediately leaving Rhode Island.
Here are a few shocking facts, thanks to our friends at the Institute for Local Self Reliance:
- Credit and debit card swipe fees totaled $187.2 billion in 2024, a record high.
- Visa and Mastercard control 85% of credit and debit card transactions. That’s a monopoly.
- They took in $111.2 billion in fees in 2024, an annual increase of more than 10%.
- Four big banks (Chase, Wells Fargo, Citi, and Bank of America) issue half of all credit cards and get a cut of each swipe fee.
- Small businesses say that swipe fees are their second highest expense after payroll.
- American businesses pay 7 times more than European businesses in swipe fees.
- Swipe fees increase the cost of food and goods by $1,000 for the average American family.
The Credit Card Competition Act before Congress right now would require card-issuing institutions to offer at least two credit card networks instead of just one, and at least one of those networks must be a network other than the Visa/Mastercard duopoly. The credit card industry and big banks have already spent $51 million lobbying Congress against legislation mandating competition.
Now Visa is raising its rates, again
The credit card companies increased fees in April 2022, October 2023, and January 2025.
On January 24, 2026, Visa is increasing fees again. Some rates are increasing by nearly 33%. Read more.
What can you do?
- Pay cash whenever you can.
- Remember that when you and friends split a bill by throwing in a few credit cards, the restaurant has to pay a fee on every card.
- Spread the word. Download our one-page fact sheet or social media graphics (below), and share with friends and neighbors.
- Ask your senators and representative to support the Credit Card Competition Act.
Sen. Jack Reed: (202) 224-4642
Sen. Sheldon Whitehouse: (202) 224-2921
Rep. Gabe Amo: (202) 225-4911
Rep. Seth Magaziner: (202) 225-2735 - Small business owners: take this survey by Small Business Rising, a coalition of advocates for independent and local businesses.
Fact sheet:
Social media graphics
