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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsNew Credit Card Transaction Fees: List Of States Charging 4% Surcharge ‘Checkout’ Fee
January 28 2013 9:54 AM
Credit card users in some states may have noticed a new fee on transactions when they swipe their cards thanks to new checkout surcharge fees.
According to CNN Money, the new 4 percent checkout fee rolled out on Sunday in 40 states in the U.S. after a $7.25 billion settlement between credit card issuers and merchants.
The settlement, announced back in July, happened when Visa, MasterCard and nine other major banks settled to fix credit card processing fees with merchants. Part of the agreement noted that credit card issuers would reduce the fees paid by merchants when credit cards are used, but only until eight months after the settlement was reached.
Now, that window of time has come and gone, and, as a result, merchants and retailers now have the option to charge customers who use credit cards. Beginning on Sunday, some merchants began charging between 1.5 percent and 4 percent of the total purchase price on all transactions to cover processing costs to credit card companies.
More: http://www.ibtimes.com/new-credit-card-transaction-fees-list-states-charging-4-surcharge-checkout-fee-1042384
Using a credit card? Watch out for the 'checkout fee'
ou might want to think twice before whipping out your credit card. As of Sunday, stores in most states could start charging you a "checkout fee" when you pay for something with plastic.
The new fees stem from a multi-billion dollar settlement announced in July between credit card issuers and millions of merchants.
Visa (V, Fortune 500), MasterCard (MA, Fortune 500) and nine major banks agreed to a $7.25 billion deal to settle charges that they were fixing credit card processing fees. As part of the settlement, credit card issuers said they would reduce these "swipe fees" -- fees paid by merchants to issuers when cards are used -- but only for eight months.
In addition, the settlement also gave retailers the option to tack on a surcharge if a customer uses a credit card. The retailer can only charge enough to cover the processing costs, which is about 1.5% to 3% of the total purchase, according to watchdog group Consumer Action.
More: http://money.cnn.com/2013/01/27/pf/checkout-fee/
peacebird
(14,195 posts)sharp_stick
(14,400 posts)not a State thing. Most national chains are not going to be charging it and any company that is accepting AMEX won't be charging it because the deal they have with AMEX forbids any surcharge fees.
Any company doing this will have to have signage letting you know what's going on and they can not charge surcharges on debit transactions.
Of course that's if I actually understood everything I read properly, it's been a long day for me as well.
OhioChick
(23,218 posts)This is the first that I've heard of this and the articles were poorly written as another poster stated.
BadgerKid
(4,551 posts)(I'm sure retailers can just raise costs to compensate, which is presumably what they've been doing thus far.)
nobodyspecial
(2,286 posts)States aren't charging anything. Retailers have the option of imposing the surcharge. Some states have banned the charge.
"Also, it is illegal to charge the fee in 10 states: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas. The remaining 40 states will charge the new checkout fee.
National retailers including Walmart, Target and McDonalds vowed not to pass on the tax to customers in any states. By law, though, retailers charging the fees, both online and in brick and mortar stores, will be obligated to post signs informing customers of the new tax."
Very poorly written article. It is NOT a new government tax.
davidpdx
(22,000 posts)It's good to know the information, but yeah the information was relayed poorly.
Curmudgeoness
(18,219 posts)and we will all be paying the inflated fee for the rest of our lives....and they will probably continue to increase fees now if they don't have to fight with the merchants anymore.
Just lovely.
panader0
(25,816 posts)I hate to use credit cards.
edit to add: Two people, my mechanic and my propane dealer, have not accepted credit cards for years because of the fees.
again: no charge on checks either. So this fee will make people charge less, use debit and checks more. That's better anyway.
OhioChick
(23,218 posts)"For concerned consumers, it should be noted that the new surcharge fee does not apply to purchases made using debit cards."
http://www.ibtimes.com/new-credit-card-transaction-fees-list-states-charging-4-surcharge-checkout-fee-1042384
panader0
(25,816 posts)takes sooooooo much time.
OhioChick
(23,218 posts)No worries.
JDPriestly
(57,936 posts)They certainly aren't paying interest to depositors. That's now below 1% in many places.
They charge interest on loans and on credit cards, but they don't pay interest on deposits or savings accounts, and now they want to charge a fee for using a credit card. Where do they put their money?
kestrel91316
(51,666 posts)BY THE MERCHANT to compensate for the fees THEY are charged by the credit card processors.
Purchasers can always get around the fee by paying cash.
I wouldn't charge a surcharge, personally. I WOULD consider a discount for cash and let my clients consider that as an option. Any whining about the situation and I'd robably give the client the boot. It's not MY fault the credit card processors are greedy bastards.
MadHound
(34,179 posts)And go to a cash/check/debit card basis.
WinkyDink
(51,311 posts)Scuba
(53,475 posts)Response to OhioChick (Original post)
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