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OP-ED: Credit Card Swipe Fees Are Financial Inequities for Black America

NNPA NEWSWIRE — Swipe fee reform isn’t radical; it’s about fair competition and a level playing field. The Credit Card Competition Act (CCCA) — a bipartisan bill being considered in Congress — aims to introduce competition into this marketplace by requiring at least two competing processing networks on each credit card. This could save American consumers and businesses an estimated $15 billion annually.

Published

1 year ago

November 30, 2024

Oakland Post

By Dr. Benjamin F. Chavis Jr., President and CEO, National Newspaper Publishers Association

America’s financial system is quietly reinforcing old inequities. Black American communities — historically denied access to wealth-building tools due to practices like redlining and restrictive banking — now face a new predatory financial hurdle: credit card swipe fees.

For Black Americans, swipe fees — which credit card companies use to fund luxury points programs — act as yet another layer of systemic discrimination, forcing many to pay more while receiving less in return.

Consider how credit card swipe fees work. Every time someone uses a credit card, the merchant is charged a fee — usually between 2% and 4% — which is often passed on to consumers through higher prices. Wealthier cardholders benefit from this system, recouping costs through rewards like fancy hotel stays and airline miles. But a legacy of discrimination has left Black families with fewer wealth-building opportunities, resulting in lower homeownership rates, lower credit scores, and higher debt burdens — putting those premium credit card and their luxury rewards out of reach for many.

In simple terms, Black Americans and other communities of color are left to foot the bill for the flights and perks of those who are considerably more affluent.

Black Americans are less likely to hold credit cards — 72% ownership compared to 88% for White Americans — and often face higher interest rates. 58% of Black Americans have more credit card debt than emergency savings, compared to 30% of White Americans. Black college graduates carry $25,000 more in student loan debt than their White counterparts, which can further harm their credit scores and financial stability.

It’s a painful irony: Black Americans, who are systematically excluded from wealth-building tools, end up paying more to access the same basic financial services. These financial pressures make it hard to escape revolving debt, and harder still to enjoy the rewards that banks offer. The promise of “free” rewards from swipe fees is an illusion for those who can barely afford to pay down their balance every month. While swipe fees aren’t solely responsible for racial wealth disparities, they compound existing financial burdens, making it even harder for Black families to build savings and financial security.

Black Americans are far from the only group that would benefit from comprehensive swipe fees reform: Small business owners and advocates across the country have been sounding the alarm and leading the calls. For small merchants, swipe fees are often their second-highest monthly cost after labor. These businesses — which operate on razor-thin profit margins — are forced to raise prices to stay afloat. The average American family pays more than $1,100 a year in higher prices due to these fees.

The current swipe fee structure exists because the Visa-Mastercard duopoly controls 90% of the U.S. credit card processing market, allowing them to set and increase rates for merchants while blocking out competitors.

Swipe fee reform isn’t radical; it’s about fair competition and a level playing field. The Credit Card Competition Act (CCCA) — a bipartisan bill being considered in Congress — aims to introduce competition into this marketplace by requiring at least two competing processing networks on each credit card. This could save American consumers and businesses an estimated $15 billion annually.

The CCCA won’t end rewards programs — only the banks that offer them can decide that. In fact, a recent study found that the CCCA would have little to no impact on rewards. What the bill would do is end a broken system that preys on those with the least and benefits those with the most.

Reducing swipe fees through pro-competition reform won’t undo generations of economic inequality, but it’s a step toward dismantling one of the structures that reinforce it. A fairer financial landscape benefits everyone, not just those most impacted — and Black Americans have paid more to receive less for too long. It’s time for that to change. An inequality anywhere is a threat to equality everywhere.

Dr. Benjamin F. Chavis Jr. is President and CEO of the National Newspaper Publishers Association (NNPA) representing the Black Press of America and Executive Producer of The Chavis Chronicles on PBS TV Network. Dr. Chavis can be reached at dr.bchavis@nnpa.org.

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LIVE from the NMA Convention Raheem DeVaughn Says The Time Is Now: Let’s End HIV in Our Communities #2

Set against the backdrop of the NMA conference, Executive Officers from the National Medical Association, Grammy Award Winning Artist and Advocate Raheem DeVaughn, and Gilead Sciences experts, are holding today an important conversation on HIV prevention and health equity. Black women continue to be disproportionately impacted by HIV despite advances in prevention options. Today’s event […]

Published

6 days ago

February 3, 2026

Oakland Post

Black women continue to be disproportionately impacted by HIV despite advances in prevention options. Today’s event is designed to uplift voices, explore barriers to access, and increase awareness and key updates about PrEP, a proven prevention method that remains underutilized among Black women. This timely gathering will feature voices from across health, media, and advocacy as we break stigma and center equity in HIV prevention.

Additional stats and information to know:

● Black women continue to be disproportionately affected by HIV, with Black women representing more than 50% of new HIV diagnoses among women in the U.S. in 2022, despite comprising just 13% of women in the U.S.

● Women made up only 8% of PrEP users despite representing 19% of all new HIV diagnoses in 2022.

● Gilead Sciences is increasing awareness and addressing stigma by encouraging regular HIV testing and having judgment-free conversations with your healthcare provider about prevention options, including oral PrEP and long-acting injectable PrEP options.

● PrEP is an HIV prevention medication that has been available since 2012.

● Only 1 in 3 people in the U.S. who could benefit from PrEP were prescribed a form of PrEP in 2022.

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TRUMP: “Washington, D.C. is Safe”

BLACKPRESSUSA NEWSWIRE — President Trump, who typically travels with a full contingent of high-level protection, insinuated that he finally felt safe enough to go to dinner in the District of Columbia. “My wife and I went out to dinner last night for the first time in four years,” said the nation’s 47th president.

Published

6 days ago

February 3, 2026

Oakland Post

By Apriil Ryan
BlackPressUSA Washington Bureau Chief and White House Correspondent

“Washington, D.C. is safe,” President Trump declared from the Oval Office today. Those words came while Trump was hosting Ukraine’s President Volodymyr Zelenskyy. During the question-and-answer session, which primarily focused on a peace deal in the Russian-Ukrainian war, Trump explained, “You did that in four days.” He was speaking of how fast the National Guard quelled the violence in what was once called Chocolate City.

The President deployed the National Guard to D.C. a week ago, to a city with reduced crime rates over the previous year. Violent crime dropped by 26%, marking the lowest level in 30 years. Homicides also fell by 11%.

President Trump, who typically travels with a full contingent of high-level protection, insinuated that he finally felt safe enough to go to dinner in the District of Columbia. “My wife and I went out to dinner last night for the first time in four years,” said the nation’s 47th president.

Trump reinforced his claim about the newly acquired safety in D.C. by relaying that a friend’s son is attending dinner in D.C., something he would not have done last year.

After the president finished his comments, a reporter/commentator in the room with close connections to Marjorie Taylor Greene jumped into the high-level conversation to affirm the president’s comments, saying, “I walked around yesterday with MTG. If you can walk around D.C. with MTG and not be attacked, this city is safe.”

That reporter was the same person who chastised President Zelenskyy months ago during his first Oval Office meeting with Trump for not wearing a business suit. Zelenskyy, a wartime President, has been clad in less formal attire to reflect the country’s current war stance against Russia.

Without any sourcing, President Trump also said, “People that haven’t gone out to dinner in Washington, D.C., in two years are going out to dinner, and the restaurants the last two days have been busier than they’ve been in a long time.”

The increase in policing in Washington, D.C. is because a 19-year-old former Doge employee was carjacked in the early hours of the morning recently.

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Rising Energy Costs Weigh Heaviest on Black Households

BLACKPRESSUSA NEWSWIRE — For many African American families, the cost of keeping the lights on and homes heated or cooled is not just a monthly bill — it’s a crushing financial burden.

Published

6 days ago

February 3, 2026

Stacy M. Brown

By Stacy M. Brown
Black Press USA Senior National Correspondent

For many African American families, the cost of keeping the lights on and homes heated or cooled is not just a monthly bill — it’s a crushing financial burden.

A new national study from Binghamton University and California State University, San Bernardino, finds that Black households spend a far larger share of their income on energy compared to white households, even when income levels are the same. “We often say that African Americans suffer more, but we often blame it just on income. And the reality is, there is something more there,” study author George Homsy, associate professor at Binghamton University, wrote. “It’s not just because they tend to be poor. There is something that’s putting them at a disadvantage. I think what happened is it happens to be where they live.” The study, published in Energy Research & Social Science, analyzed 65,000 census tracts across the United States. It found that while the average American household spends about 3.2% of income on energy bills, households in the majority African American census tracts spend an average of 5.1%.

Homsy and researcher Ki Eun Kang point to the age and condition of housing stock, along with lower homeownership rates, as key drivers. Their research concludes that “energy burden is not simply a matter of income or energy cost but also race, which might be driven by place.” Older, less energy-efficient housing and high rental rates in Black communities mean residents often cannot make upgrades like improved insulation or new appliances, locking families into higher bills.

Tradeoffs and Health Risks

The consequences go beyond money. Families forced to spend 10% or more of their income on energy — what experts classify as “unmanageable” — may cut back on food, medicine, or other essentials. More than 12 million U.S. households report leaving their homes at unsafe temperatures to reduce costs, while millions more fall behind on utility bills. The health effects are severe. High energy burdens increase risks of asthma, depression, poor sleep, pneumonia, and even premature death. The issue is especially acute for African Americans, who are disproportionately exposed to housing and environmental conditions that amplify these risks.

Washington, D.C.: A Case Study

In Washington, D.C., the problem is particularly stark. A recent analysis by the Chesapeake Climate Action Network (CCAN) shows that SNAP-eligible households spend more than 20% of their income on energy bills. Across the metro area, nearly two-thirds of low-income households devote over 6% of their income to energy, and 40% face what researchers call a “severe financial strain,” paying more than 10%. Pepco, the District’s primary electricity provider, has implemented three consecutive annual rate hikes, pushing the average household bill to $114 per month as of January 2025. Shutoffs have followed — nearly 12,000 customers lost service in 2024, with disconnections doubling after a summer rate hike. Washington Gas has also sought a 12% rate increase and pushed a controversial $215 million pipeline replacement project, rebranded as “District SAFE.” The plan could ultimately cost D.C. households an additional $45,000 each over several decades, or nearly $1,000 annually added to bills.

Historical Roots

Researchers argue that these inequities are not accidental but rooted in history. The ScienceDirect study reveals that African American communities living in formerly redlined neighborhoods continue to face disadvantages today — from poor housing quality to higher climate risks. Homsy says policymakers must make targeted efforts. “It is harder to get to rental units where a lot of poor people live,” he noted. “We need to work harder to get into these communities of color.”