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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsConsumers: Look Out for New Credit Card Surcharge
Consumers: Look Out for New Credit Card Surcharge
By Maryam K. Ansari, Esq. on January 28, 2013 11:28 AM| No TrackBacks
Watch out! Credit card surcharges are being added to some customers' receipts. And in most states, they're perfectly legal.
That's because as of Jan. 27, 2013, merchants are free to stick you with a surcharge when you pay by credit card, under the terms of a $7.2 billion settlement between credit card companies and merchants, reports ABC News.
What does this mean? Nobody really knows. Just because merchants now have the ability to impose up to a 4 percent surcharge, it doesn't mean that they will, according to Time.
The credit card surcharge is part of one of the largest antitrust settlements in U.S. history. It came about after the card issuers were sued for their "interchange fees" -- fees that merchants had to pay for the privilege of taking credit card payments from customers.
The thing is that credit card processing fees can really add up for small merchants. For many business owners, it's tough to pass these costs down to the consumer indirectly.
Under the settlement's terms, any merchant that imposes a credit card surcharge must:
Post a notice at the checkout,
Post a sign on their storefront, and
Disclose the fee on receipts as well.
Online merchants must notify customers about credit card surcharges as well.
But these new surcharges won't take effect in every state. Because of existing state laws, you won't be seeing these added surcharges in California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma, or Texas.
And American Express users won't be seeing these surcharges, either, as they go against AmEx's own rules for merchants. Nor will debit card users, as the settlement applies only to credit cards.
Furthermore, many large retailers have indicated no plans to take advantage of these new rules. According to the New York Daily News, Walmart, Target, Sears and Home Depot have indicated that they have no plans to add the surcharge.
But it's easy for them to say. They have millions of customers and vast inventory, allowing them to spread the cost of credit card fees without having to impose any formal credit card surcharge.
As for the little guy, critics of the credit card surcharge will say that he loses once again.
http://blogs.findlaw.com/law_and_life/2013/01/consumers-look-out-for-new-credit-card-surcharge.html
bluestateguy
(44,173 posts)If a store tries to charge me this fee at the checkstand, I will walk out and buy nothing, and make sure they know that the surcharge is the reason why.
SheilaT
(23,156 posts)As well they should, in my opinion. Unfortunately, offering a discount for paying cash is something the credit card companies have not allowed merchants to do since something like the 1970's. As someone who prefers to pay cash (which would include checks for all of you who are hyperventilating at the very thought of carrying more than five dollars in cash on you), I believe I deserve a discount, since the merchant gets all of my money, rather than the discounted amount from the credit card company.
And that's not even going into analyzing why credit cards have been so terrible for so many.