Operations

Merchants push back on soaring swipe fees

A third area of inflationary pressure for many restaurateurs are the fees charged for processing guests' credit-card payments. Here's why those costs are rising now, and what merchants are doing to slow the climb.

As if rising food and labor costs aren’t enough of a squeeze on margins, many restaurateurs are seeing increases in what is often their third largest operating expense, the fees for processing guests’ credit-card payments.  

Mastercard and Visa raised their swipe card fees about two weeks ago, after a double-digit increase for most merchants in 2021.

Why impose increases now? And what can restaurateurs and retailers do to counter those additional inflationary pressures? In this week’s edition of the Working Lunch podcast, Align Public Strategies principals Joe Kefauver and Franklin Coley look at the dynamics and how merchants are pushing back with requests to lawmakers that steps be taken to increase competition among processors.

They’re joined by Lyle Beckwith, leader of the Merchant Payment Coalition, a group pushing back on the increases, and SVP of government relations for NACS, the association of convenience store operators. The conversation looks at what’s being done, and what additional steps could be taken, to protect restaurateurs and retailers as they attempt to rebound from the pandemic.

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Workforce

We need a leash on the NLRB

Reality Check: The federal labor watchdog has gone off the rails again. Whatever happened to government accountability?

Financing

In appreciation of Texas Roadhouse

The Bottom Line: The steak chain has been one of the most consistently strong performers in the industry going into and coming out of the pandemic, largely by doing things the right way.

Marketing

How Facebook and Instagram are courting restaurant marketers

At a gathering for restaurants at Meta’s Chicago headquarters, the social media giant made its pitch for how it can help brands reach more customers.

Trending

More from our partners