Cash shoppers pay the price as premium card perks push up costs
Rising credit-card swipe fees, especially on premium reward cards, are driving higher prices for all shoppers and hit those paying with cash the hardest. A Harvard Business School study estimates about $30 billion a year is transferred from cash to card users in higher prices, with cash payers facing roughly 16% more than cardholders who earn rewards. Merchants say fees—up to about 5% for some premium cards—are the biggest expense after rent, squeezing wages and other investments. The trend coincides with premium cards accounting for a large share of card volume (about 60% in 2022) and global policy debates over caps and cash-discount or surcharge practices.