The Electronic Payments Coalition (EPC) has released new research highlighting the benefits of electronic payments for both small businesses and consumers during Thanksgiving. According to the study, if all American households used credit cards for their Thanksgiving dinner purchases, grocery stores could save nearly $47 million in processing costs compared to cash transactions.
Richard Hunt, EPC Executive Chairman, stated, “As families and friends prepare to gather around the table, credit cards are making holiday shopping more convenient and secure and Americans’ Thanksgiving turkeys more affordable.” He emphasized that without electronic payments, small businesses would face higher operating costs due to the hidden expenses associated with cash transactions.
Currently, the average cost of a Thanksgiving dinner for ten people is $61.17, with U.S. households expected to spend almost $2 billion on meals this year. Research by IHL Group indicates that grocery stores incur a 4.7% cost when processing cash transactions. Handling cash involves labor-intensive processes and significant security measures to ensure safe storage and deposits. Additionally, businesses face expenses related to cash handling such as labor costs for counting and depositing money. The National Association of Convenience Stores (NACS) estimates convenience store staff spend up to 20 paid labor hours weekly just counting money. Credit cards provide an operational cost reduction advantage which is critical given the 25% increase in Thanksgiving dinner costs over the past five years due to inflation.
Despite some corporate mega-retailers attributing higher costs to credit card fees, data shows these rates have remained stable at around 2% since 2019. Electronic payments offer advantages such as increased product sales, streamlined operations, enhanced consumer data protection, and reduced business costs—benefiting both companies and consumers.
Hunt added, “The power of credit cards is a huge benefit for small businesses, especially during the holidays. When you use your credit card to buy Thanksgiving dinner, you’re not just saving time—you’re helping your local grocery store thrive in a competitive environment. This isn’t just good for businesses; it keeps prices manageable for everyone in the long run.”
The EPC advocates investing in new technologies and establishing national data security standards to strengthen payment systems further.