How high-end credit card perks are hurting shoppers who pay in cash

Credit card fees raise prices for everyone, and the burden falls harder on customers who pay in cash, researchers said.Ben Denzer for NBC News / Getty ImagesUnaffordable AmericaHow high-end credit card perks are hurting shoppers who pay in cashA Harvard study estimates that people who pay with cash and debit cards are subsidizing $30 billion a year in points and rewards for credit card users.Listen to this article with a free account00:0000:00ShareAdd NBC News to GoogleJune 1, 2026, 5:00 AM EDTBy Shannon PettypieceThis article is part of “Unaffordable America,” a series examining rising economic inequality in the U.S. and the policies that drive it.Subscribe to read this story ad-free Get unlimited access to ad-free articles and exclusive content.RUCKERSVILLE, Va. — At the Tiger Fuel gas station and convenience store near the foothills of the Blue Ridge Mountains, the managers expect to pay more in fees to credit card companies this year than they will on rent — one more expense weighing on the company and its customers amid the surging price of gas.Those credit card fees — which can be as high as 5% for some premium cards offering luxury perks and hefty rewards — have been contributing to higher prices and limiting how much the store can spend on other areas, like wages, said Maurice Lamarche, vice president of retail operations for Tiger Fuel Co.“It’s tougher for us to stay afloat, tougher for us to make money at our stores,” Lamarche said. “It makes it harder for us to keep our prices low.”Maurice Lamarche, vice president of retail operations at Tiger Fuel Co., said credit card fees are the biggest expense in the Ruckersville, Va., store.Kirsten Luce for NBC NewsThe total credit and debit card fees paid by merchants to card processors, led by Visa and Mastercard, have increased 70% since 2019 to $198 billion in 2025, according to data from the Nilson Report. The rise has been fueled by an overall increase in consumer spending, a shrinking number of people using c...