Retailers warn of Visa, Mastercard fee hike

This Aug. 11, 2019, file photo shows a Visa logo on a credit card in New Orleans. Payment processing giant Visa's profits rose 21% in the first three months of the year fueled by a large jump in spending on the company's namesake credit and debit card network. The San Francisco-based company reported Tuesday, April 26, 2022, that it earned $3.65 billion, or $1.70 a share, in its fiscal second quarter that ended March 31.(AP Photo/Jenny Kane, File)

By CNN

Published: May. 19, 2022 at 11:53 AM EDT

(CNN) - Businesses are blaming credit and debit cards for higher prices at some stores.

Credit card giants Visa and Mastercard raised their interchange rates, also called swipe fees, last month.

Merchants pay the fees to banks and credit card companies for transactions made with credit or debit cards.

The fees are not a flat rate, but vary on several factors including the retailer, type of card and transaction size.

Some retailers say the increased fees will force them to raise prices on consumers or stop accepting certain credit cards.

Visa and Mastercard claim the fees help pay for reward programs and banking services, and to guarantee payment in case of customer overdraft or fraud.