The Hidden 3 Percent Fee in Government Payment Cards

Episode 59 of The Fiscal Policy Podcast digs into the small but expensive fees that state and local governments pay on every electronic benefits transaction — from EBT cards to unemployment debit cards. Each swipe costs taxpayers roughly 3 percent in interchange fees, adding up to over $1.5 billion a year nationally. Lucas and Luna examine how New York state recently cut its payment-card cost by 40 percent by switching to a low-fee provider and renegotiating its contract. They also explore why most governments haven't followed suit — the opacity of payment processing contracts, the cozy relationship between banks and state treasuries, and a pending federal rule that could force transparency. A concrete look at how tiny transaction costs quietly drain public funds. #GovernmentSpending #PaymentCards #InterchangeFees #EBT #UnemploymentBenefits #NewYork #PublicFinance #FiscalPolicy #Economics #StateBudgets #TaxpayerCost #Banking #FeeTransparency #Procurement #PolicyReform #GovernmentEfficiency #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo