New Credit Card Checkout Fees!

[Halbleib1]

Beware that starting Jan 27 retailers can charge what they are calling a checkout fee for paying with a credit card. Debit cards are excluded from the fee. Also some states do not allow it as well. http://advantage-network.com/news/article/credit-card-checkout-fee-effective-january-27th/

http://www.abc2news.com/dpp/news/state/checkout-fee-could-be-added-to-credit-card-purchases-soon

 

[sissy_ib]

Beware that starting Jan 27 retailers can charge what they are calling a checkout fee for paying with a credit card. Debit cards are excluded from the fee. Also some states do not allow it as well. http://advantage-network.com/news/article/credit-card-checkout-fee-effective-january-27th/

http://www.abc2news.com/dpp/news/state/checkout-fee-could-be-added-to-credit-card-purchases-soon

Glad I am in a state that does not allow this!

There are 10 states with laws restricting surcharging; if you suspect a violation in these states, contact the state attorney general’s office: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas.

 

[erincon23]

One more way to cost us more. Although it does cost the retailer quite a bit to accept cards (I assume this fee goes to the retailer, not to Visa?).

 

[comicguy]

Finally NYS is on the right side of something!!

 

[Reddy]

Finally NYS is on the right side of something!!

hmmm TX, NY & FL all agreeing??? has that happen before??

 

[Marionnette]

Finally NYS is on the right side of something!!

You might think that but when merchants charge 1%-4% more for items and services in those states that don't allow checkout fees, you're not going to save anything. That means EVERYONE pays more instead of just the consumers who are costing the merchant - the ones using credit cards.

At least in the states that allow the merchant to charge a checkout fee, the consumer has a choice to use another form of payment and save themselves the extra fee.

 

[disney1990]

Well, if I checkout and they have added a fee to my purchase, I will be returning the entire purchase immediately.

 

[North of Mouse]

I very much doubt this will go over with consumers. We have lots of competition in our area, and if *all* stores don't do it, the ones that try it will quickly get the message with irate consumers, and loss of business to other stores. I will watch my receipts closely, and as someone else said, will also return my purchases if I miss seeing the surcharge.

Things are high enough already

 

[java]

Well, if I checkout and they have added a fee to my purchase, I will be returning the entire purchase immediately.

How long before they start adding a "restocking" fee on your card for returns too! Maddening.

 

[4HppyCamprs]

That is just super, I just got a new debit card/visa card and it explicity states that in order to have "visa" protection on purchases and in case of fraud we need to always sign for our purchases. So now in essence I will have to pay a surcharge in order to have purchase protection bah. I guess it really will be cash for everything!

 

[Marionnette]

What would you think of the antithesis of these fees? What if a merchant offered you a discount in the range of 1%-4% if you pay with a check or cash? Would you object to that? It sounds like a wonderful deal doesn't it? And according to the new laws allowing merchants to charge a checkout fee, they can also choose to give their customers who pay cash a discount instead.

So, what's to stop a merchant from raising his fees or prices by 1%-4% for everything, and then discounting the totals for their cash customers? The outcome is the same for the merchant. He effectively passes on the fees he previously was forced to absorb in order to accept credit cards. Credit card customers pay more, cash customers think they are getting a break.

 

[North of Mouse]

What would you think of the antithesis of these fees? What if a merchant offered you a discount in the range of 1%-4% if you pay with a check or cash? Would you object to that? It sounds like a wonderful deal doesn't it? And according to the new laws allowing merchants to charge a checkout fee, they can also choose to give their customers who pay cash a discount instead.

So, what's to stop a merchant from raising his fees or prices by 1%-4% for everything, and then discounting the totals for their cash customers? The outcome is the same for the merchant. He effectively passes on the fees he previously was forced to absorb in order to accept credit cards. Credit card customers pay more, cash customers think they are getting a break.

They have already been charging cc customers more for fuel at some service stations - have particular noticed this on interstates when traveling. We avoid them like the plague, or pay with cash.

 

[Marionnette]

They have already been charging cc customers more for fuel at some service stations - have particular noticed this on interstates when traveling. We avoid them like the plague, or pay with cash.

Here's the rub: One way or another, the cost of those swipe fees gets passed on to the consumer. So it either gets passed on to all of them, including cash customers or it gets paid by the customer who is actually incurring to fee.

The lawsuit that brought this decision about was not instigated by consumers. It was started by retailers and merchants who felt that banks were price-fixing their processing fees. Those banks that we all love to hate pretty much lost the battle by having to pay merchants a $6B settlement but they won the war because they can continue to collect their high processing fees. In the end, the merchant looks evil and greedy for wanting to pass the fee on to the credit card customer.

 

[runwad]

Well it'll be bye bye credit card, HELLO debit card it this comes to pass. I have to admit I wouldn't be opposed to getting a discount for paying with cash. But I'd hope the merchant doesn't up his price and then give me a discount

 

[jmartinez1895]

I am trying to live on cash only and this will certainly give me more motivation should the fees pop up at my local places.
I understand why they are charging the fees. The credit card companies make me sick. i know it's a business and they have to make money, but come on. When you swipe your card the company charges the retailer a fee and then when you don't pay your full balance they get interest as well.

 

[Halbleib1]

One more way to cost us more. Although it does cost the retailer quite a bit to accept cards (I assume this fee goes to the retailer, not to Visa?).

No it goes to the credit card company. They are going to track the fees using an updated computer system. Rather than the retailer paying the fee the customer would now be paying it if the retailer chooses to use this method.

 

[Halbleib1]

Well, if I checkout and they have added a fee to my purchase, I will be returning the entire purchase immediately.

According to the one article you can return your purchase but you are still going to lose some money to the fees. They do not have to return the whole fee but a partial fee if you return something. If you think about it they are still using the electronic system to process the first transaction as well as the return transaction.

 

[Halbleib1]

That is just super, I just got a new debit card/visa card and it explicity states that in order to have "visa" protection on purchases and in case of fraud we need to always sign for our purchases. So now in essence I will have to pay a surcharge in order to have purchase protection bah. I guess it really will be cash for everything!

No it does not apply to check cards just credit cards. Those using debit cards still have to pay attention to their receipts though to be sure they were not wrongly charged. Also it does not apply to gift cards. The articles I attached to explain it in full.

 

[Halbleib1]

They have already been charging cc customers more for fuel at some service stations - have particular noticed this on interstates when traveling. We avoid them like the plague, or pay with cash.

Yes we have this at some stations here in PA. We also just encountered one in Orlando in December that wanted to charge us more for using Debit. Luckily the pump was not working and we had not filled up yet. We moved on to a different station.

 

[ohiopugmom]

ugh. that would be crummy. I don't have a debit card and never will again after it getting hacked once So much easier to deal with fraud charges on a cc vs. a debit card/checking account....guess I will pay for the privilege.