Card Fees: One of the Third Largest Costs for Restaurants; Rules May Change in the US

When a customer pays a $50 bill at a restaurant with a card, the transaction is completed in a few seconds.

However, the entire $50 does not reach the restaurant's cash register.

Due to the fee structure among the issuing bank, payment network, and transaction provider, the business is left with a portion of the sale as a payment cost. The debate over "swipe fees" or interchange fees is growing again in the restaurant sector for this very reason.

At the center of Restaurant Business's current analysis is the Credit Card Competition Act, which has been unresolved in Congress for years. The bill was reintroduced on January 13, 2026, in the Senate as S.3623 and in the House of Representatives as H.R.7035. The bill's fundamental approach is to prevent large credit card issuers from routing a transaction through only one payment network and to create an alternative network option for merchants.

For restaurants, this issue is not a technical payment infrastructure discussion.

It is directly about margins.

Card Fees in the US Exceed $198 Billion

According to a statement based on the Nilson Report data from the Merchants Payments Coalition, the total amount of credit and debit card "swipe fees" in the US reached $198.25 billion in 2025.

This figure was $187.2 billion in 2024.

The increase in one year is 5.9%.

Fees collected from Visa and Mastercard credit cards alone rose to approximately $118.8 billion in 2025. According to the coalition's calculations, the average swipe fee rate for credit cards on these two networks is around 2.36% of the transaction amount. These figures are based on Nilson Report data used by merchant representatives; the actual rates paid by all restaurants are not the same. The actual cost can vary depending on the size of the business, type of card, method of transaction, and provider contract.

The Federal Reserve Bank of St. Louis, however, reports a different measurement, stating that the interchange revenue collected by US banks reached approximately $66 billion in 2025. This data is not directly comparable to the total merchant processing cost across the entire payment ecosystem; therefore, the two figures should not be directly compared.

Nevertheless, the common point is clear:

The volume of card payments and the associated fee revenues are growing.

Why Are Restaurants More Sensitive?

The National Restaurant Association states that card processing costs are the third largest operating expense for many restaurants after food and labor.

According to the organization's 2026 survey, 66% of operators report that credit and debit card processing fees have increased in the last two years. The average increase reported by responding businesses was calculated at 9.4%. The same sector data shows that the median pre-tax profit margin for full-service restaurants in 2024 is 2.8%, while it is 4% for limited-service restaurants.

These rates make the swipe fee debate more visible from the restaurant's perspective.

A payment cost of around 2-3% may seem manageable for a business operating with a 20% profit margin.

However, for a restaurant with a margin of around 3%, the same rate becomes much more critical.

Moreover, since the fee is mostly calculated as a percentage of the sales amount, the nominal transaction cost increases as menu prices rise.

This means that when a restaurant raises the price of a burger from $15 to $17 due to inflation, the card cost can also automatically increase.

What Does the Credit Card Competition Act Aim to Change?

The 2026 Credit Card Competition Act does not propose a price cap that would directly "reduce credit card commissions to X%".

The model is different.

The bill proposes that large card issuers with assets over $100 billion must allow transactions on credit cards to be routed through at least two different and unrelated payment networks. At least one of these networks is intended to be outside the Visa-Mastercard duo. There are exceptions for models where the card-issuing company also operates a three-party network, such as American Express and Discover.

The logic is as follows:

If a restaurant is not forced to process a card transaction through only one network, different networks;

may have to compete to offer

lower fees,

better security,

faster processing,

and better service.

The National Restaurant Association argues that if the bill passes, it could lead to annual savings of approximately $17 billion for US businesses and consumers. This figure is based on the sector's policy advocacy; it is not realized savings.

Will Small Restaurants Automatically Benefit Equally from the Bill?

There is significant uncertainty here.

Supporters of the bill argue that competition could lower processing costs for all merchants.

The banking sector's objection is different.

The American Bankers Association and other financial institutions argue that potential savings could be concentrated among large retailers, and small businesses may not see the same advantages. They also argue that a decrease in interchange revenue could reduce card reward programs, credit access, and investments in fraud security.

Therefore, it is not accurate to simplify the debate to "restaurants will win, banks will lose".

Regulation could change the distribution of revenue in the payment system.

How much this will reflect on the restaurant's POS bill depends on how much price pressure the network competition truly creates.

Banks Warn About Rewards Programs

One of the strongest objections to the Credit Card Competition Act is regarding credit card rewards.

Today, in premium cards;

miles,

cashback,

hotel points,

restaurant credits,

and travel benefits

interchange revenues play a significant role in their financing.

The banking sector argues that when downward pressure occurs on network fees, these benefits could be reduced or card fees could increase. They also suggest that alternative routing could create a more complex structure in terms of fraud and security.

Supporters of the bill argue that only a small portion of banks are covered by the regulation, and small banks and credit unions will not be directly liable, and that competition will encourage networks to provide better service rather than reduce security.

Both sides' claims are part of the policy debate.

The outcome can only be measured with data after implementation.

The $38 Billion Settlement in the Visa-Mastercard Case Did Not End the Debate

Another significant development in the swipe fee front in 2026 is the long-standing Visa-Mastercard class action lawsuit.

In June 2026, a federal judge in the US gave preliminary approval to a revised settlement between Visa and Mastercard and millions of merchants. The economic value of the settlement is expected to be around $38 billion.

The regulation plans to reduce certain credit card interchange rates by 0.1 percentage points for five years and to cap some standard consumer credit card rates at 1.25% for eight years. Additionally, it brings more flexibility to merchants regarding the types of cards they will accept.

However, the restaurant sector does not find the settlement sufficient.

The National Restaurant Association argues that the temporary 10 basis point reduction does not address the fundamental competitive issues in the market structure.

Therefore, the court settlement did not lead to the Credit Card Competition Act being dropped from the agenda.

Illinois Is Trying a Different Approach

Outside the federal debate, new models are emerging at the state level.

The Illinois Interchange Fee Prohibition Act aims to limit the collection of card processing fees from the sales tax and tip portion.

This is particularly important for the restaurant sector regarding tips.

Because the business can also incur card processing costs on the tips it transfers to employees.

In February 2026, a federal court ruled in support of a significant portion of the Illinois regulation. Subsequently, the Office of the Comptroller of the Currency developed a federal authority argument against the state regulation for national banks in April. The legal process and the scope of implementation are still controversial.

This also shows that there is not a single solution model to the swipe fee issue in the US.

One approach aims to increase network competition.

The other tries to prohibit interchange fees from certain amounts.

The court settlement brings flexibility in fee reductions and acceptance rules within the existing system.

What Should Restaurant Operations Measure Today?

Waiting for legislation to pass is not the only option for operators.

The restaurant must first accurately calculate its own payment costs.

Total card volume.

Interchange.

Network assessment.

Processor markup.

Chargeback costs.

POS subscription.

Online order payment fees.

All of these may not appear under the same "card fee" line.

For example, a restaurant with a monthly card volume of $200,000 and an effective payment cost of 2.5% would incur approximately $5,000 in payment costs per month.

A reduction of the rate to 2.3% may seem small.

However, it would create a difference of about $4,800 on an annual basis.

In a multi-location chain, this difference can grow rapidly.

Therefore, the most meaningful KPI for the business is not just the "rate" stated by the provider, but the ratio of total payment costs to card volume.

Premium Rewards Cards May Be More Expensive for Restaurants

The cost of each card transaction is not the same for restaurants.

Rewards, premium travel, and corporate cards may have different interchange rates than standard cards.

This is why the card portfolio that the restaurant does not see when looking at the customer can affect payment costs.

The ironic part is:

As premium cards that offer high points or miles in restaurant spending become more attractive to consumers, the payment mix accepted by the restaurant may become more expensive.

Thus, the rewards economy and restaurant costs are two sides of the same system.

A portion of the financing for the "free" points that the customer sees comes from the transaction economics on the seller side.

Is Cash Discount or Card Surcharge a Solution?

Some restaurants use a card surcharge or cash discount model to make payment costs directly visible to the customer.

However, there is a commercial risk to this.

When a customer notices that the $50 bill they see on the menu is 3% more expensive at checkout, their perception of value may be distorted.

Additionally, card network rules and state legislation can vary in implementation.

In cash discounts, the business also takes on cash management, cash security, and bank deposit costs again.

Therefore, the approach of "cards are expensive, let's go back to cash" is not automatically cheaper for every business.

Digital payment;

provides faster service,

lower cash errors,

online ordering,

customer data,

and operational ease.

The correct calculation should be made based on the total operational cost of the payment method, not just the gross swipe fee.

Why Should Restaurants in Turkey Follow This Debate?

The Credit Card Competition Act is US legislation.

The interchange, POS, and bank commission structure in Turkey is subject to different regulations.

Therefore, the percentage or solution model in the US cannot be directly applied to Turkey.

However, the fundamental issue from a restaurant management perspective is the same:

As card payments become increasingly dominant, the cost of accepting payments is turning into a real line item on the P&L.

Restaurants in Turkey also need to monitor their;

bank POS commissions,

next-day/block payment differences,

online payment provider,

payment costs within food platforms,

virtual POS,

and chargeback

expenses separately.

If a restaurant increases sales by 3% while payment costs grow by 20%, the net value of growth may be lower than expected.

Stafflink's View

In our opinion, the most important aspect of the swipe fee debate in the US for the restaurant sector is broader than whether the law passes or not.

Payment is no longer a technical issue for the finance department; it is one of the fundamental cost items for the restaurant.

Recipes are written for food costs.

Hourly productivity is calculated for labor.

Energy consumption is tracked.

However, how much of millions of lira or dollars in card volume is processed through which card, which channel, and which provider is not measured with the same precision in many businesses.

If the new regulation in the US truly creates competition among payment networks, it could reduce costs for restaurants.

However, even if the regulation does not happen, the lesson for businesses does not change:

Payment costs should be managed not as a percentage, but based on the annual P&L impact and net channel profitability.

In an industry where restaurant margins are measured in a few points, the payment system that takes a few percent of the transaction can no longer be considered a small expense.