Credit card checkout fees take effect

**Gregzs** · 01-30-2013, 01:12 AM

Checkout fees take effect ? Bankrate, Inc.

Checkout fees take effect

By Janna Herron ? Bankrate.com
Monday, January 28, 2013

Starting this week, Americans may find a new checkout fee on their receipts if they pay by credit card.
Retailers can now charge up to 4 percent for credit card transactions under a provision in a class-action settlement between retailers and Visa, MasterCard and major banks. The new provision took effect Jan. 27 and allows retailers to recoup the fees they pay to credit card networks for processing credit cards.
Retailers cannot profit from the surcharges, which affect only credit card transactions and not debit or prepaid purchases, according to the settlement that was reached in July. Ten states -- California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas -- ban these surcharges, so the settlement is moot in those areas.
So far, no major national retailer has announced a credit card checkout fee, says John Ulzheimer, president of consumer education at SmartCredit.com.
"I would be very surprised, too, because they compete on price," he says. "It's like them saying, 'Hey, we're going to raise our prices.'"
Instead, Ulzheimer expects to see the surcharge pop up at liquor stores, gas stations (where profit margins are notoriously slim as it is) and mom and pop shops that operate one or few locations.
MasterCard also doesn't expect many retailers to start charging these fees, either, says company spokesman Seth Eisen. But if they do, customers must be told in advance, he notes.
Retailers must disclose the checkout fee at the store entrance, at the cash register and on your receipt. Online retailers must provide the disclosure on their website

**Zaphod** · 01-30-2013, 06:32 AM

I've seen places around here that charge you extra for using cash. Now they want to charge you extra for using credit, too.

Wonderful.

**Big Pimpin** · 01-30-2013, 06:51 AM

I'm missing the point here. Credit card fees have always been 1-5% so why would the merchant start tacking the fees onto the actual bill, when the fee is already built into the cost of goods or services in first place (assuming you're smart)?

**LAM** · 01-30-2013, 07:25 AM

Originally Posted by Big Pimpin

I'm missing the point here. Credit card fees have always been 1-5% so why would the merchant start tacking the fees onto the actual bill, when the fee is already built into the cost of goods or services in first place (assuming you're smart)?

it's called fucking over the american consumer. the merchant in some cases (depending on the jurisdiction) gets to both write off the fee as a business expense (while not actually paying the fee themselves) and pass it on the the consumer.

the healthcare sector in the US used to do the same thing. the gov would subsidize them and that was allowed to be deducted from their taxes, that which they were not paying for initially. fortunately that practice has been stopped years ago via legislation.

more on the credit card fee topic below:
Interchange Settlement | Electronic Payments Coalition

**hypo_glycemic** · 01-30-2013, 08:18 AM

When I worked for BofA merchant services central/northern cal, the merchant couldn't pass the interchange fee over to the consumer--it was illegal. So the business would work the fee and per cents per item fee back into the price of the goods you were buying-- which was illegal. Visa/MC would pick random businesses to monitor if they were passing the IC fee etc.., if they were, and got caught, the penalty at that time was a hefty fine or losing the ability to use merchant services and even check verification.. Out of the 39 branches I covered, I had a hand full of businesses that lost privilege to ever accept it again. Now days, they post that they're going to charge to the fee and add it on like a tax. I haven't read Lams link, but I think it's still illegal?

**IronAddict** · 01-30-2013, 08:28 AM

uh, might as well just get a loan from Louie the legbreaker!

Nickle and dime the consumer and your loyal subjects over and over, again.

**hypo_glycemic** · 01-30-2013, 08:37 AM

I guess they finally passed the "screwing the consumer fee" ! Jan 27th I'll be using cash only at merchant sites!!! This will go back to no fee's when the consumer cancels the credit/debit card and the banks start losing $.. Just 2 years ago the banks tried to add a misc fee to use it at POS.. That never worked and they did away with it!!!

**Eiserner Hahn** · 01-30-2013, 08:55 AM

awesome I live in Texas...none of that shit for me

**dogsoldier** · 01-30-2013, 12:36 PM

Originally Posted by LAM

it's called fucking over the american consumer. the merchant in some cases (depending on the jurisdiction) gets to both write off the fee as a business expense (while not actually paying the fee themselves) and pass it on the the consumer.

the healthcare sector in the US used to do the same thing. the gov would subsidize them and that was allowed to be deducted from their taxes, that which they were not paying for initially. fortunately that practice has been stopped years ago via legislation.

more on the credit card fee topic below:
Interchange Settlement | Electronic Payments Coalition

Cough, cough...I may have a fever and a bit delirious........... I agree with LAM.................... I think I should go lay down.

**maniclion** · 01-30-2013, 12:47 PM

Accepting American Express can be costly especially if you are in a competitive market where margins are already slim. Like 10% mark up it really bites into profits.

**Big Pimpin** · 01-30-2013, 04:00 PM

Originally Posted by hypo_glycemic

When I worked for BofA merchant services central/northern cal, the merchant couldn't pass the interchange fee over to the consumer--it was illegal. So the business would work the fee and per cents per item fee back into the price of the goods you were buying-- which was illegal. Visa/MC would pick random businesses to monitor if they were passing the IC fee etc.., if they were, and got caught, the penalty at that time was a hefty fine or losing the ability to use merchant services and even check verification.. Out of the 39 branches I covered, I had a hand full of businesses that lost privilege to ever accept it again. Now days, they post that they're going to charge to the fee and add it on like a tax. I haven't read Lams link, but I think it's still illegal?

How could you tell if they were working the fee back in?

**dogsoldier** · 01-30-2013, 07:41 PM

Eventually people will get use to the fees and life goes on. Too many people addicted to Visa out there. Or, merchants will make a big show of not charging the fee and just roll the prices of the products up to make up for the fee.

**Zaphod** · 01-30-2013, 10:08 PM

Just start carrying cash. Yet another reason to go around packing heat.

**GetBig1981** · 01-31-2013, 04:55 PM

I'm glad I live in Florida!

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