Some lawmakers are hoping to reduce swipe fees by promoting increased competition in the processing of credit card transactions.
Some gas stations and other businesses add a surcharge for customers who use credit cards to cover the swipe fee. But most retailers just raise their prices, spreading the cost of swipe fees among all their customers, whether they're paying with plastic or not. A display of credit cards accepted for use is seen on a door as a shopper steps out of a store in Monterey Park, Calif., on Sept. 12, 2023.Frederic J. Brown/AFP via Getty Images
Banks and the credit card networks are pushing back, arguing the measure would jeopardize security and credit card rewards.
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