Credit Card Companies Panned Over Swipe Fee Increases

When it comes to finances in America today, many people across the country remain on edge. Interest rates have gone up repeatedly in 2022 alone; the Federal Reserve could very well raise rates at least once more before the year ends.

Polls show that Americans are most anxious about inflation, along with the prices of rent/mortgages, groceries, gas, and other critical essentials. To put it simply, much of the middle class is being eaten alive.

Things have gotten so bad that many people are turning to credit cards they can’t afford to pay off at the end of the month. Meanwhile, credit card companies are now under fire for swipe fee hikes, per The Hill.

What to Know About Swipe Fees Associated With Credit Cards

When credit card holders make purchases, retailers are hit with swipe fees as costs of doing business. Generally, swipe fees come out to no more than 2%. However, top credit card companies like MasterCard and Visa have chosen to increase their swipe fees.

Since this decision, Democratic Sen. Dick Durbin slammed credit card companies’ decision as predatory and unreasonable.

Durbin claimed that consumers and small business owners will ultimately get the short end of the stick on this one; meanwhile, big banks are the ones who get the rewards.

The Illinois Democrat didn’t hold anything back in expressing his outrage over this. However, Durbin is a member of the party that set the inflation crisis in motion.

Credit card companies aren’t the only ones raising fees, not by a long shot. Inflation is higher than it’s ever been. Everything costs much more than it did 16 months ago.

People and businesses are having to adjust accordingly.

Similar Attacks Against Big Businesses

Durbin is far from an outlier in his take on higher rates from large companies.

Other members of his party claim that oil and gas companies are unfairly and greedily surging prices. In actuality, gas and fuel are more expensive for these companies to come upon.

This is especially true in America since Biden rolled back many thriving parts of the domestic energy industry. At the same time, Democrats in California are making matters worse by actually raising gas taxes.

Democrats can complain all they want about big businesses increasing their prices. However, if the party was truly as serious about this as it claims to be, Democrats would look at what’s causing this trend.

It’s not about corporate greed or large companies suddenly coming together to put the squeeze on the American public. These price increases are unfortunate results stemming from the mess Democrats made of the nation’s economy.

What do you think about credit card companies increasing their swipe fees? Let us know in the comments area below if you believe this will hurt small businesses and consumers.