San Antonio, December 20, 2025
In San Antonio, local businesses are increasingly passing credit card processing fees onto customers, reacting to rising operational costs. Small business owners, like Betty Dovalina from Betty’s Flower Shop, have begun informing customers of added charges, as they struggle with monthly fees reaching thousands of dollars. The Texas Restaurant Association highlights the heavy burdens these fees impose on households, and consumer preferences may shift toward cash payments as awareness grows.
San Antonio Businesses Shift Credit Card Fees to Customers Amid Rising Costs
San Antonio, Texas – An increasing number of local businesses are passing credit card processing fees onto customers due to escalating costs associated with card transactions. This trend is particularly evident among small business owners who have traditionally absorbed these expenses.
Rising Costs Prompt Fee Shifts
Business owners in San Antonio are feeling the pressure of rising operational costs linked to credit card processing fees. For instance, Betty Dovalina, owner of Betty’s Flower Shop on Southwest Military Drive, reported spending approximately $2,500 monthly on credit card fees. Faced with mounting expenses, she now informs customers of additional charges for credit card payments. Other local establishments, such as Aldaco’s Mexican Restaurant in Stone Oak, are also considering implementing similar fees, noting that they send over $200,000 annually to credit card companies.
Industry Response and Legal Considerations
The credit card industry, including major players like Visa and MasterCard, argues that increased credit card usage, rather than fee hikes, drives higher costs. They emphasize ongoing investments in fraud protection and network security that contribute to operational expenses. However, some business associations are voicing concerns that proposed settlements in a longstanding federal antitrust lawsuit do not address the full spectrum of merchant issues. The Texas Restaurant Association estimates that credit card fees cost American households approximately $1,800 annually, highlighting the financial burden on both businesses and consumers.
Consumer Impact and Payment Preferences
As businesses shift the responsibility of credit card fees to customers, consumer awareness is increasing. Some individuals are opting for cash payments to avoid these additional charges, signaling a potential change in payment preferences. Business owners like Aaron Selinkoff from Specht’s Texas have noted that while customers are more understanding of credit card fees, the cumulative effect of these charges can be significant. Opting for cash payments, in this case, can help consumers bypass the extra costs.
Background Context
Credit card processing fees have long been a contentious issue for merchants, with a class-action lawsuit filed against Visa and MasterCard in 2005 addressing interchange fees. A proposed settlement in November 2025 aims to provide businesses with more flexibility in managing these fees, including the option to pass them onto consumers. However, major retailers like Walmart have voiced objections, claiming that the settlement does not adequately tackle the issue of excessive fees.
Conclusion
As credit card processing fees continue to rise, more San Antonio businesses are choosing to pass these costs onto customers. This trend underscores the ongoing challenges that merchants face in managing transaction expenses and reflects the evolving dynamics of consumer payment preferences in the local economy.
FAQ
Why are San Antonio businesses passing credit card fees onto customers?
Businesses are transferring credit card processing fees to customers due to escalating costs associated with card transactions.
How much do credit card processing fees cost businesses annually?
For example, Aldaco’s Mexican Restaurant sends over $200,000 annually to credit card companies.
What is the proposed settlement in the Visa and MasterCard lawsuit?
The proposed settlement aims to provide businesses with more flexibility in handling interchange fees, including the ability to pass them onto consumers.
How are consumers affected by this shift in fee responsibility?
Consumers are becoming more aware of additional charges and may prefer cash payments to avoid extra costs.
What is the Texas Restaurant Association’s stance on credit card fees?
The Texas Restaurant Association estimates that credit card fees cost American households approximately $1,800 annually, highlighting the financial burden on both businesses and consumers.
Key Features
| Feature | Description |
|---|---|
| Business Owners’ Response | Many are passing credit card processing fees onto customers due to rising costs. |
| Consumer Impact | Increased awareness and a shift towards cash payments to avoid additional charges. |
| Legal Developments | A proposed settlement in a federal lawsuit aims to provide businesses with more flexibility in handling interchange fees. |
| Industry Perspectives | Credit card companies argue that increased usage, not fee hikes, drives higher costs; some business associations contend the proposed settlement doesn’t sufficiently address merchant concerns. |
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Author: STAFF HERE SAN ANTONIO WRITER
The SAN ANTONIO STAFF WRITER represents the experienced team at HERESanAntonio.com, your go-to source for actionable local news and information in San Antonio, Bexar County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Fiesta San Antonio, San Antonio Stock Show & Rodeo, and Dia de los Muertos. Our coverage extends to key organizations like the Greater San Antonio Chamber of Commerce and United Way of San Antonio and Bexar County, plus leading businesses in retail, insurance, and energy that power the local economy such as H-E-B, USAA, and Valero Energy. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREDallas.com, and HEREHouston.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
