Swiss businesses and consumers face rising hidden costs

Swiss businesses and consumers are facing various forms of hidden cost increases. Small and medium-sized enterprises (SMEs) are often impacted by undisclosed banking fees during international transactions. Specifically, banks apply an FX spread—an additional markup on the market exchange rate—averaging between 1.57% and 2%. Furthermore, international card transactions can incur hidden costs of 3% to 5%, while standard SWIFT transfers often carry fixed fees of 20 to 30 CHF regardless of the transaction size.

In the retail sector, consumers are encountering shrinkflation, where product quantities are reduced while prices remain stable or increase. Examples include chocolate brands like M&M's, where packaging sizes have decreased significantly, and household goods like margarine and pet food. This tactic leverages consumer psychology, as shoppers are often more sensitive to direct price hikes than to subtle reductions in product volume.