In Ruckersville, Virginia, the Tiger Fuel gas station and convenience store is grappling with rising credit card fees that now surpass their rent expenses. These fees, particularly from premium cards offering luxury perks, are contributing to increased prices and limiting the store’s ability to invest in other areas such as employee wages, according to Maurice Lamarche, vice president of retail operations for Tiger Fuel Co.
Impact on Local Businesses and Consumers
The fees paid by merchants to credit card processors like Visa and Mastercard have surged by 70% since 2019, reaching $198 billion in 2025. This increase is driven by higher consumer spending, fewer cash transactions, and rising fees that fund rewards programs. The National Retail Federation estimates these fees add over $1,200 annually to the average household’s expenses.
While credit card users benefit from rewards like cash back and travel perks, cash and debit card users face higher prices without any benefits. A Harvard Business School study estimated a $30 billion annual wealth transfer from cash and debit users to credit card users, akin to a 16% sales tax increase for cash payers.
Economic Disparity and Consumer Behavior
This issue disproportionately affects lower- and middle-income Americans, who are more likely to use cash. Meanwhile, premium credit cards, often used by higher-income individuals, carry higher fees for merchants. The wealth gap in America continues to widen, with the wealthiest benefiting from stock market highs and real estate values, while average Americans face declining earnings and rising costs.
The Electronic Payments Coalition argues that the Harvard study overlooks the costs of handling cash and the benefits of credit cards, such as fraud protection and faster transactions. They also note that many low- and middle-income families rely on rewards programs to offset rising living costs.
Some retailers, including Tiger Fuel, are advocating for legislation to cap these fees, and some businesses are offering cash discounts or adding surcharges for credit card use. Lamarche acknowledges the challenge these fees pose for both retailers and customers.
Original reporting: NBC Connecticut — read the source article.
