This holiday season, Americans will spend a record $128 billion on mobile purchases, according to Adobe. Behind this headline number lies a more significant story: retailers are quietly orchestrating a revolution against the hidden tax that's been driving up consumer prices for decades—credit card processing fees.
U.S. merchants pay nearly $100 billion annually in credit card processing fees. That's a 3-4% tax on almost every transaction, ultimately passed on to consumers through higher prices. It's a tax that disproportionately impacts lower-income shoppers, who often pay these inflated prices with cash or debit cards, effectively subsidizing the rewards programs enjoyed by higher-income credit card users.
