According to the National Retail Federation, total back-to-school spending is projected to reach $41.5 billion, and college shopping $94 billion.
Swipe fees, charges made to businesses each time a credit card is used to make a purchase, could skyrocket the price of college and school supplies.
Banks and card companies charge merchants about 2% of each credit card transaction, leading retailers to pass most of this cost on to consumers.
This year, swipe fees are so high that they could drive up the cost of these necessary school and college supplies by $3 billion!
Swipe fees have jumped $22 billion in the last decade and broke a record at $160.7 billion last year.
It should be noted, however, that swipe fees, also called interchange fees, do come with benefits.
Swipe fees not only fund a majority of credit card rewards but also offer benefits like higher sales and fraud protection for businesses.
Are you willing to pay more for the convenience of credit card transactions? Consider the benefits and costs before you shop!