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-   -   Money Be on the lookout for new credit card ‘checkout fees’ (http://www.chiefsplanet.com/BB/showthread.php?t=269388)

R8RFAN 01-27-2013 05:58 PM

Be on the lookout for new credit card ‘checkout fees’
 
NEW YORK (CNNMoney) — 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.
The new fees stem from a multi-billion dollar settlement announced in July between credit card issuers and millions of merchants.
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.
Although 10 states currently have laws restricting these types or checkout fees, North Carolina is not one of them.
Many big players in the retail industry have been up in arms about the settlement. Stores from the nation’s largest retailer down to small businesses have lamented the agreement, claiming that it transferred the wrongdoings of credit card issuers to the consumer.
In November, the National Retail Federation and more than a dozen retailers asked a judge to reject the proposed settlement. In a brief submitted to a U.S. District Court judge in Brooklyn, N.Y., the trade organization wrote that the new fees threaten a merchant’s ability to keep prices low for customers.
Wal-Mart, Macy’s, JCPenney, Limited Brands, Gap Inc. and The Neiman Marcus Group were among those who joined the NRF in claiming that “raising consumer prices by adding an ‘interchange tax’ is no remedy for Visa’s and MasterCard’s continuing monopoly abuse.”
In a separate statement, Wal-Mart said that it would cost consumers “tens of billions of dollars each year.” Target called the agreement “bad for both retailers and consumers.”
Merchants have a choice as to whether to implement the surcharge, but it poses quite a dilemma for them: Either get stuck footing the bill for the swipe fees, or risk transferring the cost to customers in an already competitive environment.
Last summer, Target said it had no interest in charging customers who use credit cards more “in order to allow Visa and MasterCard to continue charging unfair fees.”
Smaller merchants echoed these concerns over the deal, saying it doesn’t go far enough.
MasterCard said it doesn’t expect most merchants to put the surcharge into effect, since stores won’t want to drive away business.
“We anticipate that they will not impose checkout fees, particularly because the value merchants derive from card acceptance far exceeds their costs,” the credit card company said in a statement.
Credit: CNN.
http://myfox8.com/2013/01/27/be-on-t...checkout-fees/

|Zach| 01-27-2013 06:01 PM

They are illegal in Kansas. FYI for some CPers.

mikeyis4dcats. 01-27-2013 06:34 PM

AMEX also prohibits it, and since anyplace that accepts AMEX must enforce a surcharge across all cards, they cannot surcharge at all.

sedated 01-27-2013 06:37 PM

I guess they arent illegal in MO, because The Quaff has charged me an extra $1 for using my card for a few years now.

R8RFAN 01-27-2013 06:42 PM

I think what is killing the merchants is the people who are buying a pack of gum with the credit card.... The profit margin is small already, then they charge a .20 transaction fee + a % of the total sale.

The villain is the credit card companies not the merchants

bevischief 01-27-2013 06:42 PM

Does this apply to debit cards as well?

R8RFAN 01-27-2013 06:43 PM

Quote:

Originally Posted by bevischief (Post 9356264)
Does this apply to debit cards as well?

Probably if the bank that backs it charges a transaction fee

ElGringo 01-27-2013 06:55 PM

Quote:

Originally Posted by bevischief (Post 9356264)
Does this apply to debit cards as well?

I believe this would also depend on if you use it as a debit or credit card. I know when I go to my favorite liquor store in the states, they always ask. I tell them it doesn't make a difference, so they decide depending on how much the transaction is. It would appear there are 2 different charges to the store depending on the amount of the bill.

Coach 01-27-2013 06:56 PM

Well, I guess I better start carrying cash then....

mikeyis4dcats. 01-27-2013 07:02 PM

Quote:

Originally Posted by bevischief (Post 9356264)
Does this apply to debit cards as well?

no

007 01-27-2013 07:04 PM

Not many good reasons for being stuck in Kansas but this one actually helps. LMAO

Have to keep an eye on the internet purchases though.

bevischief 01-27-2013 07:07 PM

So where is all this this change? So far it has cost me more money.

bevischief 01-27-2013 07:09 PM

Quote:

Originally Posted by mikeyis4dcats. (Post 9356383)
no

I only pay cash or use my debit card. I have no credit cards any more.

007 01-27-2013 07:09 PM

Quote:

Originally Posted by bevischief (Post 9356413)
So where is all this this change? So far it has cost me more money.

Its hopey change. You pay the fee then it goes to the people that can't pay the fee.

Saulbadguy 01-27-2013 07:10 PM

Quote:

Originally Posted by R8ers (Post 9356263)
I think what is killing the merchants is the people who are buying a pack of gum with the credit card.... The profit margin is small already, then they charge a .20 transaction fee + a % of the total sale.

The villain is the credit card companies not the merchants

It's a wash. Merchants make more money by accepting credit cards.


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