Credit Card Purchases Save Merchants Up to $57 Million This Thanksgiving

Efficiencies in electronic payments reduce merchant costs compared to cash transactions

American families are expected to spend more than $1.8 billion on Thanksgiving meals this year. If all those purchases were made with credit cards, retailers would save an estimated $43 million to $57 million in processing costs compared with handling the same volume in cash, which would cost merchants more than $85 million to process, according to assumptions based on data from IHL and Nilson.

“As we prepare to gather with our families and friends for the holidays, credit cards are making those meals a little more affordable,” said EPC Executive Chairman Richard Hunt. “Without electronic payments, the hidden costs of cash would drive up expenses for small businesses. The advantages of credit cards are especially meaningful for small businesses during the holidays. When you use your card to buy Thanksgiving groceries, you’re not just saving time and earning valuable rewards like cashback, you’re helping your local store operate more efficiently in a competitive market. That efficiency helps keep prices reasonable for everyone.”

Data from IHL Group shows that grocery stores pay about 4.7% to process cash transactions. Handling cash is labor-intensive and requires substantial security investments to safeguard and deposit funds. Businesses also face additional expenses, including labor required to count, manage, and transport cash.

Despite claims from large corporate retailers that credit cards drive up costs, the data tells a different story. Average credit card acceptance rates have remained virtually unchanged at around 2% for a decade. Electronic payments help businesses sell more products, streamline operations, strengthen data security, and reduce overall costs — benefits that ultimately flow to both merchants and consumers.