While more consumers opt for credit over cash, small business are likely to see processing fees eat away at more of their already thin margins in the coming year, NBC News reported.

Merchants paid an average of 2.6% in swipe fees for transactions using the Visa and Mastercard networks in 2023, according to the Nilson Report provided to the outlet. Even though federal rules cap debit card swipe fees at 21 cents per transaction, those for credit cards can be higher.

In 2023, 32% of all consumer payments were on credit cards, up from 24% in 2019, according to a Federal Reserve study. At the same time, use of cash dipped from 16% in 2023 down from 23% in 2019.

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