Black Americans end up paying more to access basic financial services

By Dr. Benjamin F. Chavis Jr., President and CEO, National Newspaper Publishers Association& & America’s financial system is quietly reinforcing old inequities. Black American communities — historically denied access to wealth-building tools due to practices like redlining and restrictive banking — now face a new predatory financial hurdle: credit card swipe fees.    For Black Americans, swipe fees — which credit card companies use to fund luxury points programs — act as yet another layer of systemic discrimination, forcing many to pay more while receiving less in return.& & Consider how credit card swipe fees work. Every time someone uses a credit card, the merchant is charged a fee — usually between 2% and 4% — which is often passed on to consumers through higher prices. Wealthier cardholders benefit from this system, recouping costs through rewards like fancy hotel stays and airline miles. But a legacy of discrimination has left Black families with fewer wealth-building opportunities, resulting in lower homeownership rates, lower credit scores, and higher debt burdens — putting those premium credit card and their luxury rewards out of reach for many.& & In simple terms, Black Americans and other communities of color are left to foot the bill for...