U.S. merchants experienced a significant increase in card processing fees, paying a record $198.25 billion in 2025, which reflects a 219% rise since 2009, according to figures from the Merchants Payments Coalition. This trend has made card acceptance the second-largest operating expense for businesses, following labor costs.
Despite the rising fees, interchange rates set by major card networks like Mastercard and Visa have seen minimal changes. Mastercard’s highest interchange rate increased from 3.25% in 2009 to just 3.30% in 2025, while Visa’s rate grew from 2.95% to 3.15%. The overall increase in costs for merchants is largely attributed to processor markups and additional fees, as interchange rates have remained relatively stable.
For many businesses, understanding these hidden costs can be instrumental in managing expenses effectively. A former executive in the credit card processing industry has launched an auditing firm to help merchants identify overbilling practices, noting that 99% of the statements they review reveal discrepancies. The firm underscores the importance of negotiating contracts and asking specific questions prior to signing, such as clarifying the processor’s markup and examining potential termination fees.
Merchants are advised to secure written confirmations of any verbal promises made by processors to ensure contractual integrity. Careful negotiation and diligence could save businesses thousands of dollars annually in unnecessary fees.
Why this story matters: Rising card processing fees are becoming a major financial burden for U.S. businesses, affecting their profitability.
Key takeaway: Understanding and negotiating processing contracts are crucial for merchants to avoid excessive charges.
Opposing viewpoint: Some may argue that card processing fees are a necessary cost for convenience and security in transactions.
