How big the holiday jump really is
Census Bureau figures, not adjusted for seasons, show how much retail volume piles into December. U.S. retail sales, leaving out car dealers, were $489.0 billion in October 2025 and $556.9 billion in December, up 13.9% [1]. Clothing stores jumped further, from $18.6 billion in October to $27.5 billion in December, up 48.4% [1]. Then January fell back: clothing store sales were $14.3 billion in January 2026, about half of December [1].
| Kind of store | Oct. 2025 | Dec. 2025 | Jan. 2026 |
|---|---|---|---|
| Retail, excluding motor vehicles and parts | $489.0 billion | $556.9 billion | $440.2 billion |
| Clothing stores | $18.6 billion | $27.5 billion | $14.3 billion |
On a flat rate, fees follow that curve exactly. Take a store with $40,000 in October card sales whose December is 48% higher, about $59,360. At Square's in-person price of 2.6% plus 15 cents [3] and a $50 average ticket, fees run about $1,160 in October and about $1,721 in December.
Why a big December does not earn a lower rate
Many owners assume card networks reward a big month. Visa does publish lower retail credit rates for high performers, but its thresholds are built for national chains: the lowest retail tier requires at least 19.2 million transactions and $1.08 billion in volume over 12 months [2]. A local store pays the standard rates, holiday rush or not.
What you can negotiate is your processor's markup and monthly fees. If December volume pushes your annual total well past last year's, that is a fair reason to ask for a better markup in January.
The holiday sales that cost the most
Premium rewards cards come out in force for big gift purchases. On Visa's schedule, an in-store sale on a Visa Signature Preferred card costs 2.10% plus 10 cents in interchange, against 1.51% plus 10 cents on a basic card [2]. You cannot refuse the card, but you can see its share in your statement detail.
Online and phone orders cost more than in-store taps. Visa's card-not-present rate for a traditional rewards card is 2.04% plus 10 cents, against 1.65% plus 10 cents in store [2]. Visa also lists small discounts for online sales that use secure tokens, starting at 0.05% [2]; ask your processor whether your web checkout qualifies.
Watch for downgrades
A sale that misses Visa's data or timing requirements can fall to the non-qualified rate of 3.15% plus 10 cents [2]. If you see downgrade charges, ask your processor which requirement each sale missed, such as card data or how quickly the batch was closed.
What to check on the statement in January
- Divide total fees by total card sales for November and December. That is your effective rate. Compare it with October.
- Look for lines labeled non-qualified, mid-qualified or downgrade, and add up their dollars.
- Count keyed-in sales. If staff typed cards that were present, retrain before next season.
- Total refund and chargeback fees. Holiday returns and disputes arrive in January.
- Check for new or higher monthly fees that started during the busy months.
If your processor bills in tiers, the January check is where the hidden cost shows up. Our guide to tiered pricing explains how those tiers are set, and our guide to lowering fees ranks what to fix first by dollars.
Run the numbers before next season
The cheapest time to change how you process is late winter, when volume is low and next December is far away. BatchOut can read a holiday statement and show what the same volume would cost on other pricing. Our retail processing guide covers the store-specific rates in more depth.