Buyer beware: Credit card surcharges kick in Sunday
Starting Sunday, the things you buy will be more expensive if you use a credit card.
For years credit companies have been charging stores a processing fee, so store owners fought back filing a lawsuit against those card companies.
A settlement going into effect Sunday allows stores to pass those fees directly onto you. The cost depends on the store's contract with the credit card companies - but could be up to 4 percent of your purchase. So that $5 latte may get a 20-cent bump.
Stores will have to tell you ahead of time if they are hitting you with the surcharge, and retail experts says small businesses will be more likely to charge the fee. Big stores are less likely to do so.
And shoppers who pay cash may pay less - since they won't have a fee compared to customers using credit.
The surcharge may come as a shock to consumers who are used to swiping their card without giving it much thought.
"Arguably, customers are already paying for this. So the fact that retailers will now be able to turn around and charge their customers additional on top of that ... I think is a little bit outrageous," says Trish Wexler of the Electronic Payments Coalition.
But Mallory Duncan of the National Retail Federation says stores have an incentive not to pile on the surcharges.
"Because most merchants compete by lowering prices - being cheaper than the next guy," he says. "You're much more likely to see merchants giving discounts."
The charge will not apply to debit cards or American Express cards.
And of course you can avoid any fees by paying with old-fashioned greenbacks.
The new rules from Visa and MasterCard require retailers who apply a credit card surcharge to post a notice at the store’s entrance, but the exact percentage of the surcharge does not need to be disclosed until the point of sale. The customer receipt must list the amount of the surcharge.
Online stores with a surcharge will not be required to have a notice on the home page. They only need to alert shoppers about this when they reach the page where credit cards are first mentioned. In most cases, that means the final step of checkout when the purchase is being completed.
While we need to get ready to pay more here in Washington, Oregon and Idaho, the new fees will not go into effect in 10 states that outlaw credit card surcharges.
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For more information »
www.nbcnews.com/business/attention-shoppers-another-credit-card-fee-here-1C8086499
www.consumer-action.org/downloads/english/checkout_fees.pdf
For years credit companies have been charging stores a processing fee, so store owners fought back filing a lawsuit against those card companies.
A settlement going into effect Sunday allows stores to pass those fees directly onto you. The cost depends on the store's contract with the credit card companies - but could be up to 4 percent of your purchase. So that $5 latte may get a 20-cent bump.
Stores will have to tell you ahead of time if they are hitting you with the surcharge, and retail experts says small businesses will be more likely to charge the fee. Big stores are less likely to do so.
And shoppers who pay cash may pay less - since they won't have a fee compared to customers using credit.
The surcharge may come as a shock to consumers who are used to swiping their card without giving it much thought.
"Arguably, customers are already paying for this. So the fact that retailers will now be able to turn around and charge their customers additional on top of that ... I think is a little bit outrageous," says Trish Wexler of the Electronic Payments Coalition.
But Mallory Duncan of the National Retail Federation says stores have an incentive not to pile on the surcharges.
"Because most merchants compete by lowering prices - being cheaper than the next guy," he says. "You're much more likely to see merchants giving discounts."
The charge will not apply to debit cards or American Express cards.
And of course you can avoid any fees by paying with old-fashioned greenbacks.
The new rules from Visa and MasterCard require retailers who apply a credit card surcharge to post a notice at the store’s entrance, but the exact percentage of the surcharge does not need to be disclosed until the point of sale. The customer receipt must list the amount of the surcharge.
Online stores with a surcharge will not be required to have a notice on the home page. They only need to alert shoppers about this when they reach the page where credit cards are first mentioned. In most cases, that means the final step of checkout when the purchase is being completed.
While we need to get ready to pay more here in Washington, Oregon and Idaho, the new fees will not go into effect in 10 states that outlaw credit card surcharges.
----
For more information »
www.nbcnews.com/business/attention-shoppers-another-credit-card-fee-here-1C8086499
www.consumer-action.org/downloads/english/checkout_fees.pdf
"The charge will not apply to debit cards or American Express cards."
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Well thereâs AMEX way back in to common use.
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Also I use a debt card. Paying for things with money i do have, but not letting a pocket thief steal my cash.
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I have operated several small business over the last 30 years...never accepted any plastic...check/cash only, and in 30 years only had 2 checks bounce, one I had subcontracted for, the other was a friend...the friend paid the other didn't. Sure can't afford 4% plus $35 a month for a reader.....I have 2 credit cards, leave them home and only use them for extreme emergency...I get by just fine.
So much for "cashless society". At least for now or until things get bad enough where we all have Oregon Trail cards.
Time to shred the credit cards, folks, and live within our means.  Cash only.  It's a smart way of living.Â
Just more reason to pay off and never charge again. if you can't pay cash or debit leave in on the shelf. Hurry get your credit cards paid off before inflation hits. your credit cards are all variable rates and you could see double the interest in the coming years.
As a business, I know how much it costs to run cards and some of that cost is totally unforseeable and out of your control because it depends on the kind of card the consumer has. Right now, the place I work for is running about 4% but some of that is because we primarily sell on the internet which means no physical card swipe so the fees are higher.Â
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In Oregon, this has been legal for a number of years. Think about the gas stations that tell you that there is a .45 charge to swipe. I'm not sure that much will change since for us it seems to be the same law.
Convenience and credit come with a cost. I'm with Margay........ditch the credit cards.
Just one more good reason I'm happy that I shredded all my credit cards 10 years ago..! Â "Never again...!" Â :-)
 @margay1 Cash still works. :)
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