May 17, 2017
U.S. merchants paid $88.39B in card fees in 2016: Nilson Merchant Fees Report
CARPINTERIA, CA -- Credit, debit, and prepaid general purpose and private label cards issued in the United States generated $5.936 trillion in payments for goods and services in 2016. Processing fees, which include interchange, paid by U.S. merchants to handle all card payments, were $88.39 billion, according to The Nilson Report, the leading card and mobile payment trade publication.
“When you add up all of the spending and divide by the fees merchants pay, the average is $1.49 for every $100 in card sales,” commented David Robertson, publisher of The Nilson Report.
Visa, Mastercard, American Express, Discover, and private label (store, gasoline, medical, etc.) credit cards accounted for a combined $3.347 trillion in purchase volume. This amounted to 56.38 per cent of all card spending including debit and prepaid. Credit cards accounted for $69.79 billion in processing fees, equal to 78.96 per cent of total processing fees paid by merchants.
Visa, Mastercard, and PIN-based EFT system debit card payments generated $2.589 trillion in 2016 and accounted for 43.62 per cent of all spending for goods and services including credit cards. Debit cards generated $18.60 billion or 21.04 per cent of the total processing fees paid.
The weighted average of processing fees paid as a percentage of purchase volume from all credit, debit, and prepaid general purpose and private label cards was 1.49 per cent in 2016.