BALTIMORE — Inflation has been soaring for months and along with higher prices for goods and services comes higher consumer debt.
The Federal Reserve said Americans' consumer debt increased by more than $52 billion in March.
Credit card debt also cost businesses more money as well.
More and more people are relying on their credit cards to get by or make ends meet.
However, each swipe takes a hit on a store's bottom line.
According to the Federal Reserve revolving credit, which includes using credit cards, is is up more than 21% from last year.
Interest rates also keep going up which also can affect how much you owe on your credit cards if you carry a balance.
It's costing consumers more money but businesses are having to pay more as well because credit card swipe fees also are going up.
Those higher fees could eventually cost consumers more money as well.
Those swipe fees are charged every time people swipe a credit card while shopping as the business has to pay a fee to the "payment-processing company".
The swipe fee for Visa and Mastercard is about 2% of the purchase-price.
For example, on a $50 transaction buying gas, the business only makes $49 dollars with $1 going towards processing fees.
As those fees go up, the extra cost will most likely be passed on to the consumer.
Giant Eagle supermarkets CEO Laura Shapira Karet said “the price of goods go up, what's happening is the credit card companies are getting a higher percentage on a higher sale. that means there's more cost that we have to bear and pass along to our customers.”
Visa and Mastercard increased their swipe fees last month, saying the money is used for security and fraud protection. Experts believe there should be limits on swipe fees for credit cards just as there is a limit on debit cards.
Sen. Dick Durbin (D-Illinois) said “I think the American people need to know the story about these fees that cost merchants and customers, and why they're not disclosed. There's a reason. I think there'd be a revolt, even more strongly, against them. We're facing inflation and the last thing the American people need is a higher swipe fee.