Halloween Swipe Fees Estimated at $320M: Pricing Moves for Merchants
Halloween swipe fees will top $318 million, a merchant group estimates. Learn how to figure your own holiday card costs and lower them before Black Friday.
Photo: Pixabay
On this page 7 sections
- What the Merchants Payments Coalition Found About Halloween Swipe Fees
- How the $320 Million Estimate Was Calculated (And Its Limits)
- Work Out Your Own Seasonal Swipe-Fee Cost in Five Minutes
- Why Holiday Sales Raise Your Effective Rate: Rewards Cards, Card-Not-Present and Small Tickets
- How to Offset Swipe Fees in the Holiday Season
- The Political Push Behind the Numbers and What Could Change
- Next Steps Before the Holiday Rush
Key takeaways
- The Merchants Payments Coalition puts Halloween 2026 swipe fees at $318.6 million. It got there by applying a 2.36% average credit card fee to NRF's $13.5 billion spending forecast.
- The 2.36% figure is a national average for Visa and Mastercard credit cards. Your own effective rate could be higher or lower, depending on your card mix, sales channels and ticket sizes.
- To estimate your holiday card fees, divide total fees by card volume on a recent statement, then multiply that rate by your forecast of seasonal card sales.
- To lower costs before the rush, check debit routing, Level 2/3 data for business buyers, and your pricing model. Cash discount, dual pricing and surcharging are options only where they're allowed and properly disclosed.
A merchant trade group's new estimate puts Halloween swipe fees at about $320 million this year. That's a national number, though, and it says little about what your store will pay. This article covers how the estimate was built, how to work out your own seasonal card costs in a few minutes, why holiday sales tend to push your rate up, and what you can do about it before Black Friday.
Figures below are as of October 21, 2026, unless noted.
What the Merchants Payments Coalition Found About Halloween Swipe Fees
In an estimate released October 19, 2026, the Merchants Payments Coalition (MPC) said swipe fees represent $318.6 million of the $13.5 billion consumers are expected to spend on Halloween. The coalition represents retailers, grocers, convenience stores, online merchants, hotels and other businesses. Per shopper, the estimate works out to about $2.72 of the projected $115.14 average spend.
MPC also split the total by category using the National Retail Federation's projections:
| Halloween category | MPC's estimated swipe fees |
|---|---|
| Costumes | $103.8 million |
| Decorations | $101.5 million |
| Candy | $96.8 million |
| Greeting cards | $18.9 million |
That breakdown lines up with the businesses that see the most Halloween traffic:
- Apparel shops and boutiques selling costumes and accessories
- Retail and home stores selling decorations
- Grocery markets moving candy by the cart
- Online stores shipping all three
How the $320 Million Estimate Was Calculated (And Its Limits)
The math is simple. MPC took the NRF's 2026 spending forecast and multiplied it by an average credit card transaction fee of 2.36%. And 2.36% of $13.5 billion comes to about $318.6 million.
The inputs come from these sources:
- The spending number. NRF expects Halloween spending to reach $13.5 billion in 2026, up from a record $13.1 billion in 2025. The figure comes from a survey by Prosper Insights & Analytics of 7,889 consumers between September 1 and 9, 2026.
- The fee rate. Citing Nilson Report data, MPC said the average swipe fee for Visa- and Mastercard-branded credit cards rose to 2.36% in 2025, up from 2.35% in 2024. Combined credit and debit swipe fees hit a record $198.25 billion that year.
What the 2.36% Average Credit Card Transaction Fee Doesn't Tell You
The estimate works for a headline, but it's only a rough guide for your own budget. MPC itself said the exact share going to processing fees is hard to pin down. Here are the main gaps:
- It applies a credit card rate to all spending. Some Halloween purchases are paid in cash, and debit cards often cost less to accept. Both would pull the real number down.
- It's an average. MPC said fees average 2.36% but can reach 4%. Your rate depends on the cards your customers use and how they pay.
- It may not match your statement. Your total cost includes your processor's pricing and any monthly or per-item fees. A national average of card costs won't line up with your bill line by line.
Work Out Your Own Seasonal Swipe-Fee Cost in Five Minutes
Your effective rate is total fees divided by total card volume. It's the most useful number to know going into the holidays. Here's how to find it:
- Pull your most recent full monthly statement. Find total card sales (gross volume) and total fees charged.
- Divide fees by volume. For example, $1,150 in fees on $42,000 in card sales is an effective rate of about 2.74%.
- Forecast your seasonal card sales. Start with last year's card volume for October through December and adjust for what you expect this year.
- Multiply. If you expect $80,000 in holiday card sales at 2.74%, you'll pay about $2,192 in fees. At the 2.36% national average, the same sales would cost about $1,888.
- Split by channel if you sell online. Online and in-store sales usually run at different rates, so figure each one separately.
All numbers in this section are illustrative.
| Illustrative channel split | Holiday card sales | Effective rate | Estimated fees |
|---|---|---|---|
| In-store | $55,000 | 2.6% | $1,430 |
| Online | $25,000 | 3.1% | $775 |
| Total | $80,000 | About 2.76% blended | $2,205 |
If your fees are hard to read, our guide to how interchange fees are set explains each layer. If a holiday surge is coming, tell your processor before your sales spike so a sudden jump in volume doesn't lead to held funds. If you sell in both channels, see what to check before using one processor online and in-store.
Why Holiday Sales Raise Your Effective Rate: Rewards Cards, Card-Not-Present and Small Tickets
Many merchants see their effective rate go up from October through December. Usually that's because the mix of transactions changes, not because anyone raised prices.
Rewards and Premium Cards
Gift shoppers often reach for rewards credit cards to earn points or spread out costs. Those cards generally carry higher interchange than basic credit or debit cards. When more of your sales land on them, your blended rate climbs.
Card-Not-Present Orders
Costume and décor orders move online as Halloween gets close, and online gift shopping takes over in November. Card-not-present transactions typically cost more than chip or tap payments at the counter because the fraud risk is higher. Our breakdown of card-present vs. card-not-present fees covers the differences. Late-delivery disputes on time-sensitive orders like costumes can also add chargeback costs. If customer data is ever exposed, follow our 72-hour data breach notification checklist. For more on disputes, see our October 23, 2026 payments news roundup on friendly fraud evidence.
Small Tickets
Grocery and convenience-style Halloween sales are often small: a bag of candy, a mask, a greeting card. If your pricing includes a fixed per-transaction fee, that fee eats a bigger share of small sales. As an illustration, under pricing of 2.5% plus $0.10, a $4 candy purchase costs $0.20 in fees (5%). A $60 costume costs $1.60 (about 2.7%).
How to Offset Swipe Fees in the Holiday Season
None of these steps is right for every business. Set up properly, each one can cut costs without hurting the checkout experience.
Check Debit Routing
The 2010 Durbin Amendment required that debit cards be enabled on at least two unaffiliated networks, and it capped debit interchange for large issuers (those with $10 billion or more in assets). Debit card issuers with less than $10 billion in assets are exempt from the cap, so debit cards from smaller banks and credit unions can cost more to accept. Ask your processor whether your terminals and gateway send debit transactions over the lowest-cost network available, both in-store and online. For grocery and other businesses that take a lot of debit, this is often the quickest win. See how debit and credit processing fees compare.
Send Level 2/3 Data on Business Purchases
This step matters if you sell to businesses that pay with corporate or purchasing cards. Think of a party supply store selling to schools and offices, or a boutique filling a staff costume order. Passing extra transaction data, such as tax amount, customer code or line-item detail, can qualify eligible commercial cards for lower interchange. It does nothing for consumer cards, and networks revise these programs from time to time. Confirm current eligibility and whether your gateway supports it.
Review Your Pricing Model
On flat-rate pricing, the mix changes described above may already be priced in, often at a premium. On interchange-plus pricing, you can see exactly what each card type costs you. Compare the two in interchange-plus vs. flat-rate pricing.
Consider Cash Discount, Dual Pricing or Legal Surcharging
These programs pass some or all card costs to customers who pay by card:
| Program | How it works | Holiday considerations |
|---|---|---|
| Cash discount program | Posted prices include the card cost, and cash payers get a discount | Clear signage at entrances and registers |
| Dual pricing for retail and online | Cash and card prices are shown side by side | Price tags, shelf labels and online listings all need both prices |
| Credit card surcharging | A fee is added to credit card transactions where permitted | Network caps, disclosure rules, card-type limits and state laws apply |
Surcharging is the most tightly regulated of the three. Some states prohibit or limit it, network rules set caps and disclosure requirements, and debit and prepaid cards are treated differently from credit. For examples of how state rules differ, read our explainers on the New York credit card surcharge law and the Illinois Interchange Fee Prohibition Act. This is general information, not legal advice. Confirm the rules for your state with a qualified professional before launching.
Think about timing. Launching a new pricing program in the middle of the rush means retraining staff and changing signs while gift shoppers are comparing prices. If you plan to make a change, do it before Black Friday, not during it.
MannyPay offers zero cost processing programs, which are compliant programs designed to help eligible merchants offset most or all of their card-processing fees. Results depend on your business, location and setup.
The Political Push Behind the Numbers and What Could Change
MPC's Halloween numbers are part of a broader campaign for the Credit Card Competition Act. Senators Roger Marshall and Dick Durbin reintroduced the bill on January 13, 2026. As MPC describes it, the bill would require banks with at least $100 billion in assets to enable credit cards on at least one unaffiliated network in addition to Visa or Mastercard.
Here's where the bill stands:
- Earlier attempts haven't passed. Supporters tried to attach it to the CLARITY Act in January. In March, the Senate passed a housing bill without the amendment.
- The White House still backs it. MPC said President Trump renewed his call to pass the bill at an October 19 rally.
- Opposition is organized. Banking and payments groups warn the bill could reduce card rewards, restrict access to credit and weaken security.
For your holiday budget, plan as if today's fee structure will still be in place. Separately, the swipe fee settlement heading to final approval could change some acceptance rules over time.
Next Steps Before the Holiday Rush
- Calculate your effective rate from last month's statement, with separate rates for in-store and online.
- Multiply it by your forecast of holiday card sales to get a fee budget.
- Ask your processor about debit routing, Level 2/3 support and your pricing model.
- Check your state's rules before adding any cash discount, dual pricing or surcharge program.
If you'd like a second opinion, MannyPay works with grocery markets, apparel and boutique shops, independent retail stores and e-commerce merchants. Request a free processing quote, and a MannyPay specialist will get back to you within one business day.
Sources
- Swipe fees add nearly $320 million to consumers' Halloween costs, merchants group says (Mass Market Retailers)
- Halloween Data and Trends (National Retail Federation)
- US Halloween spending expected to reach new record in 2026 (WorldFootwear)
- Swipe Fees Reach Record $198.25B (Progressive Grocer)
- Merchants Welcome Trump's Latest Call to Pass the Credit Card Competition Act (Merchants Payments Coalition)
- Merchants Welcome Trump Promising to Pass Credit Card Competition Act 'As Soon As Possible' (Merchants Payments Coalition)
- CCCA seeks new path to passage (Payments Dive)
- Credit Card Competition Act of 2026: Implications for Card Issuers, Payment Networks, and Consumers (Kilpatrick Townsend)
- Marshall, Durbin Reintroduce Credit Card Competition Act Backed by President Trump (Sen. Roger Marshall)
- Regulation of Debit Interchange Fees (Congressional Research Service)
This article is for general educational purposes and is not legal, tax or financial advice. Card network rules and state laws change; confirm current requirements for your business.
