New Credit Card Checkout Fees!

[manning]

Does it have to be posted that a fee would be added on?

I have no problem to going back to cash only transactions. Will make me more aware of what I spend. Matter of fact I think I will ask for a cash dicount. The ultimate revenge, show up at the register with three shopping carts, lay them out on the counter and then ask for the discount. When they say no, and you know they will, just walk out leaving it there.If enough do it the merchant will realize his costs are going up as he/she will have to restock it.

 

[AngieMouse86]

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.

Wow, somehow I assumed this was common practice as gas stations have been like this around So Cal for some years. Not all of them, mind you, but many. I, too, avoid the, as best I can. One of my favorite and most convenient 76's recently switched to this pricing. I don't fill up there anymore.

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[starwood]

Does it have to be posted that a fee would be added on?

I have no problem to going back to cash only transactions. Will make me more aware of what I spend. Matter of fact I think I will ask for a cash dicount. The ultimate revenge, show up at the register with three shopping carts, lay them out on the counter and then ask for the discount. When they say no, and you know they will, just walk out leaving it there.If enough do it the merchant will realize his costs are going up as he/she will have to restock it.

"To avoid blindsiding customers, merchants that impose checkout fees must disclose the surcharge at store entrances, at the register and on customer receipts. Online businesses must put a notice on their homepage."

 

[stacy347]

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.

Yeah, it is actually the norm here, and has been for a long time. We don't have any gas stations around here that are the same price for cash and credit. My sister came to visit from IN and was really surprised because her gas stations don't do that.

We also have mom and pop stores that have signs up stating that if you are purchasing under a certain amount (usually $5-10), that you either pay cash or an extra fee (usually 50 cents). Years ago, I was told by a boss in retail that this was illegal, but they've been doing it forever around here. I guess now they can just do it aboveboard.

I was already trying to go back to a cash system for my budget, so this is just a bigger incentive.

 

[mbf]

My DH owns a small business and the cost to the merchant for taking credit cards is unbelievably high. Fortunately he rarely is asked this (when he is it is usually people who want their cars towed and he will just refer them to a shop that will take CC's). That said, he uses his business CC a ton to pay for parts and supplies because the miles add up very quickly. If the merchants he uses were to start imposing a surcharge then he will just go back to paying them by check. The benefit in either case does not outweigh the extra cost.

Fortunately we live in NY state where (for now) this is not supposed to happen. But we do have gas stations that give a "discount" for using cash and I also know of small businesses (dance studios, automobile repair shops) that add surcharges for using CC's. Every time I add money to my son's lunch account online I have to pay a $1.75 convenience fee. We had wanted to pay youngest DD's tuition bills with our CC (again to get miles) but her college charges a whopping 4% fee for using a CC to pay so we nixed that one.

The problem for me using my debit card as "debit" over "credit" is that my Credit Union charges me $1 every time my card is used as a debit. I also find that transactions hit the account faster when used as a credit over a debit (which I like so I can balance my account daily) and the gas stations do not place holds on my account when the card is used as credit to pay at the pump.

Overall I think this is going to confuse a lot of people. Any online companies that start charging the surcharge will likely not get my business. Since their lifeblood is CC transactions I would think the larger companies like Amazon etc would have this fee built into their prices already. It would be smarter for any smaller companies with an online presence to just increase their prices by 1-5% to offset any costs of processing CC's. I do feel for the small businesses that have to deal with this but I am sure that the giant companies do not even pay close to what the small businesses pay for this service.

 

[kamik86]

I'm with those that don't want to deal with fees. I would rather they just state the price of something all at once. So I would not shop anywhere that has these fees.

However since 99% of my shopping is done in MA, NY, and FL (when at Disney) I only have to worry about this the few times I go up to VT.

 

[eliza61]

I'm going to take a wait and see attitude.

1) this holiday season according to business report consumers racked up less credit on their cards. can't see credit card companies wanting to tick their customers off more.

2) another report has said that consumers also have become more "knowledgable" this Christmas. More people are comparison shopping, using technology (apps on phones) and web shopping to get the best prices. So I don't care if you call it a check out fee or pass the fee off by raising prices, more consumers are price shopping so retailers are still going to feel the wrath if their prices are too high.

 

[imsayin]

Since their lifeblood is CC transactions I would think the larger companies like Amazon etc would have this fee built into their prices already.

The big companies also pay a lower percentage in fees. For a small shop owner they probably pay Visa 3-5% per transaction. Walmart probably pays less than 1% (I'm guessing).

 

[ilovemk76]

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.

Retailers incur about 2% bad debt. When they get a charge transaction they get paid and the bad debt is consolidated at the cc company.

It was a win-win for larger retailers but smaller ones did take a hit. The biggest complaInt many had was the minimum purchase. You could charge a pack of gum or the like.

IMHO I think only all places will pass on the fee or more likely do the cash discount.

 

[scrapquitler]

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

I'm confused about WHY debit cards are exempt? Don't merchants also pay a fee to MC/Visa (whichever logo is on the debit card) for processing those payments? But honestly, I don't know about this because I don't have/use a debit card...I only have a 'regular' ATM card (which I almost never use outside of my own banks ATM machine), it's not a branded mc/visa one.

 

[okeydokey]

This is something that MAY happen. I don't see retailers charging this fee. It would push customers to other stores. I can't get up in arms about something conceptual.

 

[4HppyCamprs]

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.

Thanks!! I always use the signature because of the extra protection.

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[rock_doctor]

This is something that MAY happen. I don't see retailers charging this fee. It would push customers to other stores. I can't get up in arms about something conceptual.

I agree, i will just not go to stores that charge this fee or to websites that charge this fee. Imho, CC fees are the cost of doing business for businesses.

 

[manning]

The dirty fact is the cost of using the CC is already built into the price. The honest way is going to a cash discount.

 

[plummer925]

yay Maine! Glad it won't happen here!

But either way...all the more reason to go all cash!

 

[HM]

Ugh. We use CC for everything (pay off at the end of each month) and we do many many transactions a month. What I think we'd have to do is be more judicious in how we make purchases instead of just buying when and where we want. I'll have to save up a list of things I want or need an purchase all at once or something... It would be a definite behavioral change for our household.

 

[leahjade]

Big chains like Walmart and Target aren't going to do this only some smaller retailers. I never carry cash so any store that won't take my credit card won't have my business.

 

[JB2K]

This is something that MAY happen. I don't see retailers charging this fee. It would push customers to other stores. I can't get up in arms about something conceptual.

"If" it happens, it will be disguised in the form of higher in-store prices for each piece of merchandise.

And the previous poster is right -- for the most part, if fees were to be implemented, it's a safe bet Walmart and Target would absorb the costs (mainly, because Target owns/operates their own bank/card system, and Walmart is just plain huge).

And the credit/debit thing may cause some confusion, since whenever Visa/MC is swiped, there is no differentation in the network as to whether or not that card is credit or debit. The PIN numbers many punch-in at checkout are not part of the Visa/MC system, but rather a group of national debit networks (e.g., Star, NYCE).

As swipe fees go, merchants used to pay a small amount for PIN (about 1%), compared to MC/Visa (3%), and AmEx/Discover (5%) -- not 100% sure how that's all been playing-out since 2008...

 

[plummer925]

"If" it happens, it will be disguised in the form of higher in-store prices for each piece of merchandise.

I agree, but also want to ad - those of us who are currently taking credit cards (we own a business and have a merchant account) ALREADY figure those fees into the prices, so there would be no reason for those states that allow it for those merchants to increase their prices.

 

[Marionnette]

The dirty fact is the cost of using the CC is already built into the price. The honest way is going to a cash discount.

A fact which a number of people choose to ignore. But naturally, if you offer a cash discount, the CC users get all bent out of shape. So merchants have just built the cost of accepting CCs into their prices. Everyone pays so that CC users can swipe, sign and go.

If we were to offer a cash discount at our business, we would run into the same "I'll go elsewhere" mentality. What they don't understand is that the cost is already factored into out business model and they are already paying for more as a result.