Theres a big problem in America that Trump wants to fix.
President Donald Trump is promising to target another expense tied to the everyday purchases Americans make with their credit cards.
During his speech Wednesday at the Republican midterm convention in Dallas, Trump pledged to reduce what he called “out-of-control credit card swipe fees,” arguing that changing the system could lower costs for American families and businesses.
“We will cut out-of-control credit card swipe fees, saving the average family $1,200 per year,” Trump told the crowd.
The announcement puts renewed attention on a fee that most consumers rarely see but that businesses pay millions of times every day.
What Are Credit Card Swipe Fees?
When Americans use a credit or debit card to buy groceries, fill their gas tanks, eat at a restaurant or make other purchases, merchants generally pay fees to banks, card networks and payment processors involved in completing the transaction.
These charges are commonly referred to as swipe fees or interchange fees.
Individual consumers usually don’t see a separate swipe-fee charge on their receipts. Instead, the merchant pays the cost of accepting the card.
Retail groups have long argued that businesses ultimately have to account for these expenses through their prices, meaning consumers can indirectly bear some of the cost.
Trump Says Families Could Save $1,200
Trump claimed his proposed changes could save the average American family approximately $1,200 per year.
That number deserves some important context.
The $1,200 figure is also promoted by the Merchants Payments Coalition, an organization representing retailers and other businesses advocating for changes to the nation’s credit card payment system.
According to the coalition, swipe fees increase merchant operating expenses and ultimately contribute more than $1,200 annually to consumer costs for an average household.
That does not mean every American family would automatically receive or save $1,200 if Trump’s proposal becomes law. Actual savings would depend on the policy ultimately adopted and whether lower merchant expenses translate into lower consumer prices.
Credit Card Fees Have Become Big Business
The amount of money involved has grown substantially.
Credit and debit card swipe fees totaled approximately $198.25 billion in 2025, according to data cited by the Merchants Payments Coalition.
That was up from approximately $187.2 billion in 2024, an increase of nearly 6% in one year.
The average swipe fee for Visa- and Mastercard-branded credit cards increased to approximately 2.36% of each transaction in 2025, compared with 2.35% a year earlier.
For example, a 2.36% fee on a $100 purchase would equal approximately $2.36, although actual fees can vary depending on the card, merchant and transaction.
Those small charges become substantial when multiplied across the billions of card transactions Americans make every year.
Trump Targets Visa and Mastercard Fees
Trump argued that Americans face significantly higher swipe fees than consumers and businesses in some other countries.
“We will not allow Americans to pay seven to eight times more in those fees than they do in other countries,” Trump said.
The Merchants Payments Coalition similarly argues that U.S. swipe fees are more than seven times the 0.3% maximum applied to many transactions in Europe.
Visa and Mastercard dominate the U.S. card-network market, accounting for more than 80% of the market according to the merchant coalition.
Trump did not announce a specific swipe-fee rate he would seek or provide detailed legislation explaining precisely how the reduction would be achieved.
Why Swipe Fees Matter to Small Businesses
The issue can be especially important for small businesses operating on narrow profit margins.
Consider a local grocery store, hardware shop or family-owned restaurant.
Every time a customer pays by card, the business can incur processing costs. When those expenses are multiplied across hundreds or thousands of transactions, they can become a significant operating expense.
Merchant organizations argue that lowering these costs would leave businesses with more money to reduce prices, increase wages, hire workers or invest in their operations.
Banks and payment-industry groups have pushed back against some proposed reforms, arguing that changes to interchange fees could affect credit card rewards programs, financial services and access to credit.
That disagreement has made swipe-fee reform a continuing battle in Washington.
Trump Has Backed Credit Card Reform Before
Trump’s latest announcement is part of a broader effort to address costs associated with credit cards.
Earlier this year, the president called on Congress to pass the Credit Card Competition Act, legislation intended to create additional competition among the payment networks that process certain credit card transactions.
Trump said at the time that Congress should act against what he characterized as excessive swipe fees.
He has separately proposed placing a 10% cap on credit card interest rates.
Swipe fees and credit card interest rates are different issues.
Swipe fees are generally charged to merchants when consumers make card purchases.
Interest rates determine how much cardholders can be charged for carrying qualifying unpaid balances.
Both affect the broader credit card market, but Trump’s latest announcement specifically focuses on the transaction fees paid by merchants.
Visa and Mastercard Face Changes Already
The credit card industry is already confronting potential changes to its fee structure.
A federal judge in June granted preliminary approval to a revised settlement involving Visa and Mastercard in a long-running dispute with merchants over swipe fees.
The settlement would require reductions in certain fees and make changes to rules governing how merchants accept cards.
The agreement remains controversial, with some merchant organizations arguing that the changes do not go far enough.
That means Trump’s proposal arrives while Washington, retailers, banks and the nation’s largest card networks are already debating how America’s payment system should operate.
Could Consumers Actually See Lower Prices?
This is likely to be the most important question for American families.
Reducing the fees businesses pay does not automatically guarantee that every dollar saved by merchants will be passed directly to customers.
Some businesses could use lower expenses to reduce prices. Others might invest the savings elsewhere in their operations.
The ultimate impact would depend on the details of any legislation or regulatory changes and how businesses respond.
Trump nevertheless argues that dramatically reducing swipe fees could provide meaningful relief at a time when household expenses remain a major concern for many Americans.
What Happens Next?
For now, Trump’s swipe-fee proposal remains a pledge rather than a completed policy.
The president has not announced his preferred fee cap, a timetable for implementing the changes or precisely how the government would enforce lower rates.
Any major overhaul could also face resistance from banks, credit card companies and other financial-industry interests.
Supporters, meanwhile, are likely to argue that greater competition could benefit small businesses and consumers.
With Americans increasingly relying on credit and debit cards for everyday purchases, even relatively small changes to transaction fees could involve billions of dollars across the economy.
Trump has now made clear that he wants those fees reduced.
Whether Congress agrees — and whether American families ultimately see lower prices as a result — will determine how significant this promised financial break actually becomes.
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