Using a Credit Card? Watch Out For the 'Checkout Fee'

[Common Sense Party]

I had not heard about this. One more way they get you. This does not apply to debit cards.

You 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.

...Visa, MasterCard 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.

This fee doesn't apply to purchases made using debit cards. And it will still be illegal to charge the new fee in 10 states, including New York, California and Texas.

More at: http://finance.yahoo.com/news/using-credit-card-watch-checkout-204500679.html

[Common Sense Party]

1. Here are the 10 exempt states:

California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas

They have laws that prohibit surcharges.

[Common Sense Party]

2. Target, Wal-Mart, McDonalds, among others, have said they won't tack on the fee. n/t

[A HERETIC I AM]

3. If I like a retailer, I would use my card as a debit card.

But when one pisses me off, I would have them run it as credit, that way they have to pay the fee.


Guess I'll have to stop that now, EH?
Even though I live in Florida, I'm all over the South East these days, so I'll have to watch it.

Hope you're well, CSP

[SheilaT]

4. Now if they'll only go back to giving a price break to those who pay cash,

then all would be right with the world.

Although in a way, this fee does give the cash payer a break. Guess how I usually pay for stuff?