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Credit Card Users: You Might See a Surcharge of up to 4% on Your Receipts

Starting Sunday, consumers might have to pay more to use credit cards.

Merchants who accept MasterCard and Visa will soon be able to tack a surcharge onto your bill. The surcharge is fallout from a class-action settlement reached last July that ended years of legal battles between merchants on the one hand, and banks and credit card companies on the other.

Along with paying a group of retailers $6.05 billion, Visa, MasterCard, and several banks and credit card institutions agreed to allow merchants to charge an extra credit card fee starting Jan. 27.


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Not applicable in many states (California, Connecticut)

due to state law stuff. google it

states will get in line

Smart ones immediately.. dumb ones in the next century. But, that's the beauty of local law.

I am so glad

that as a business owner, I don't have to pay for your rewards points anymore. YAY!!!! It cost us as business owners for each reward point a person gets from the CC company. This is a good thing. If I want to offer reward points to a customer, then I should have the option, not forced into it. It's like entitlements that everyone on this board has a problem with. The CC company takes our money (business owners) and distributes it to reward card holder as if they are footing the bill. Maybe some people don't know that as a merchant, fees are different for each different rewards card.


This is a huge win!

For stopping credit card companies from using legislation to bully merchants.

Previously, it was illegal to offer a cash discount.

Credit card companies offer a service, the user should pay for it, not the merchant. What is going to keep merchants from "double-dipping"? the free market! which is now freer!

This measure only helps consumers and small business. This only hurts the credit card companies. Pick whatever side you want.

When I used to work at a guitar shop it was ILLEGAL to say "I'll give you a discount if you use cash" or "I'll have to charge you an extra 1% for AMEX" ILLEGAL!!! Why??? Because credit card companies bought the government and their cronies enforce it.

Rewarded for using cash? for the privacy of no paper trail and wisdom of not going into debt? SIGN ME UP! If you hate cash and want to only cary one card around- do it. and pay for it. But don't raise my prices because of your laziness.


NBC did a "piece" last night and showed a list of 1000's of corporations and businesses who will not take part in this.

Macys, Wamart, Target, Sears, and many many others.
They will lose business if one company isnt doing this. the internet will alert people to who is doing it and that company will lose business.
It was another ill intentioned plot by the American Corporatists- that back fired.

Corporations should get smart and charge the banks who gave the CC a 4% up charge. Not their own customers who use them.

"OH NO! He has a SON?" Neoconservatives and Liberals EVERYWHERE!

Rand Paul 2016

So will this include ATM

So will this include ATM point of purchase sales?

Cash is KING!!! And ALWAYS will be...

Granted, I'm in CA so we here are not affected.

This news is timely. My New Year resolution actually calls for eliminating the majority of my CC usage (work in progress)..once I totally pay off the remaining negligible balances on a couple of those CC's from last Dec (I pay off my CC's monthly ever since I owned one, never paid for finance charges..hated them).

Only the convenience of gas pump purchases and monthly online CC utilities payments (whichever is only allowed, on my AMEX Costco) will remain. Everything else will be...CASH. Back to the "King"... :)

That's one other major reason I do NOT have a credit card

Unfortunately as a result no credit either.

When I was young and dumb plenty of credit cards abound, never bit. I have never believed in spending more than I take in. Interest rates will kill you as well.

Unfortunately later into my 30's when I tried to get a simple $500 limit card I was denied because of lack of credit. So I can't buy a house, until I establish credit with a prepaid card and then get a crappy credit card. Well, my bank does not issue pre paid credit cards to where I can buy all my groceries and have my checking account pay my credit card balance for me each month (no late payments.)

Using credit only rewards insalubrious behavior by the banksters. I feel guilty even having a bank account.

Credit sucks. I know it's a necessary evil for many but I don't believe in spending more than one makes personally. That's why I am saving my FRN's to buy property with cash.

We need many like you in congress

How 'bout running for a seat!

" In Thee O Lord do I put my trust " ~ Psalm 31:1~

I'm with you. I'm not quite

I'm with you. I'm not quite in my 30s yet but have never owned a credit card and plan to pay for property with cash... or silver if the dollar dies ;)

End The Fed!
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consumer affiars hack

So, the cost of credit transactions will no longer be borne by merchants.

Guess what happens what the price it costs a business to sell a good goes down 4%?

If we told readers that prices may go down 4% if they use cash, probably not as alarming of a story though.

They will keep some of the

They will keep some of the profit, and they will give some if it back to the customer.

Plan for eliminating the national debt in 10-20 years:

Overview: http://rolexian.wordpress.com/2010/09/12/my-plan-for-reducin...

Specific cuts; defense spending: http://rolexian.wordpress.com/2011/01/03/more-detailed-look-a

not a good paul listener

Learn about profit. Businesses don't control their prices dude, customers do. That's your govt education seeping through.

So, if the NFL salary cap rises, the owners keep the profits? The players don't get the full salary cap in your world?

Govt education demonizing businesses. Wrong site friend.

No. The theory you expouse

No. The theory you expouse would only work in perfect competition.

In traditional markets, the elasticity of supply and demand become important.

Supply and demand controls prices. Customers and businesses can have influence on both.

How does the NFL salary cap have to do with this? The NFL salary cap is a predetermined agreement between the players and the owners that players are to earn a given portion of revenues. If the salary cap rises, it means that revenue has gone up, and as such, the players total income has to go up.

Plan for eliminating the national debt in 10-20 years:

Overview: http://rolexian.wordpress.com/2010/09/12/my-plan-for-reducin...

Specific cuts; defense spending: http://rolexian.wordpress.com/2011/01/03/more-detailed-look-a

Merchants have to raise

Merchants have to raise prices frequently due to inflation. So they will be implementing this fee instead of, or in addition to, raising prices, either in response to future cost increases or to recent cost increases where they were afraid to raise prices.

The idea that merchants will be double-dipping by charging this fee on top of current prices is ridiculous and could only be spoken by someone who has never run a business for a length of time to experience inflation. Merchants know quite well that higher prices or added fees will drive away some customers, and the merchant must disclose before processing the transaction that there will be a 3% cc fee.

Lahtidah.... lalala.... get some cash and hide it...

this could trigger a flight to cash and there isn't enough... even with Benjy cranking the presses at full speed. And if you don't have a stash of PMs, I think we are looking at "last call" here, but they are really good at manipulating the market, could prove me wrong.

Love or fear? Choose again with every breath.

This will backfire against

This will backfire against the stores and credit card companies, guaranteed!

There is no Left or Right -- there is only freedom or tyranny. Everything else is an illusion, an obfuscation to keep you confused and silent as the world burns around you." - Philip Brennan

"Invest only in things that you can stand in front of and pr

How will this 4% increase

How will this 4% increase backfire on credit bard companies and stores? Also, would it backfire in this climate, one that's centralizing? I think this fee is yet another contrivance of the Big Boys to consolidate life yet again. Will nonmassive businesses shutter sooner than they would if this fee didn't exist?

Big Business and government strike again, eh?

School's fine. Just don't let it get in the way of thinking. -Me

Study nature, not books. -Walton Forest Dutton, MD, in his 1916 book whose subject is origin (therefore what all healing methods involve and count on), simple and powerful.

Good. It's about time.

There has always been a fee for using a credit card but businesses have not been able to pass it on to just the credit card customers because of coercion by the banks/credit card companies. Because of this the price of goods went up to compensate and you end up paying more even if you use cash. Now perhaps people will see how they are being ripped off by credit card companies/banks.

Now I can pay less if I use cash as it should be.

I was recently buying some furniture and such

And the price has literally skyrocketed to twice the cost compared to four years ago, doubling, for worse made materials from China. I tried to find some US stuff, nothing. At least that I could afford.

That's total BS. The quality of goods have halved, and the cost doubled so the inflationary tax has quadrupled in four years.

But inflation is 2%?

TwelveOhOne's picture

Oil change last week $38

This was in a 5-cylinder Volvo. Used to be $25. You're right, it's happening already.

I love you. I'm sorry. Please forgive me. Thank you.
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Now banks do a lot of evil

Now banks do a lot of evil things but this isn't part of it.

Credit cards are actually a service and as a service have a cost involved that the banks may charge for. The entire arrangement of how the fee is set up is a private agreement. Nobody forced it as far as I know. I am just old enough to remember a time where many businesses didn't take credit cards. This didn't change because businesses thought it wasn't in their best interests. They must have felt they could make it up somehow and did otherwise credit cards would have grown from where they were in the 1970s and prior.

I also doubt that cash customers pay more. Yes I understand what some gas stations are doing, they think they can make more sales and more profit that way, so be it. The way the 'cash' and 'credit' prices come and go in that business tells me it is more of gimmick than anything. It works for awhile to generate more business and profits and then it doesn't so they drop it. Then the cycle repeats some time later.

Simply put, if businesses could charge more, they would just charge more and put it in their pockets. What they are doing by accepting credit cards is making it easier for their customers to spend more and reduce their transaction costs. Cash has transaction costs too. So do checks. I'll wager that the banks have set their fees to be inline with the costs businesses have with regard to other transactions.

If you think business is eating credit card fees

then you are just being purposefully ignorant. Banks forbade business from charging their credit card customers the fee for there use so the cost got spread to all customers regardless of payment options. This is fact.

At my work

we do not accept credit cards. Only cash or check.

For gas, I always pay cash. I showed my boss how much the credit account cost at a fueling station vs buying with cash and am now re-imbursed with cash. I usually use natural gas but I have to run a tank of gas every month or so. But it saved us some good money. I take in the receipt and get my money back.

I remember back in the late 80s or early 90s

there was a corner Exxon station that advertised a four cent lower price per gallon for cash customers and we did the same as you with our service fleet. We gave them cash to buy gas at that station and saved quite a bit of money in the process. But after a while the credit card company got wind of it and forced the station to quit.

The price of gas at that station didn't go down to the cash price but it remained at the credit price which meant that cash customers were paying credit fees even though they were not using credit. Businesses do not eat expenses. They pass them on to the customer. It's about time they can pass them on to only the customers who incur extra fees instead of everyone regardless.

I wish

more likely is that prices will stay the same, and credit card users will get charged more. Even if the vendor raised all their prices to absorb the credit card fees, they aren’t likely to reduce them. This will just let them pass on the card fees. Vendors are like the government in that. They won't terminate a revenue stream once it's been established. ;)

Just open the box and see

No vendors are not like the Gov't!

Vendors don't get to use threats violence to force you to pay their income like Gov't workers. Vendors actually have to provide a product or service at a price you'd be willing to pay or they go out of business. Anyone who equates Gov't taxfeeders with private vendors is a moron.

No offence meant

I only was drawing the relationship that vendors do think of the bottom line, and would be reluctant to reduce an income stream.

Interesting aspect to take offence at. Thanks for setting a straw man on fire for me. ;)

Just open the box and see

Well thought out line of reasoning there...



My original comment was cynical

for sure, perhaps overly so. But it was just an analogy, designed to draw inference to ONE aspect only.

A truck driver, broken down in a truck stop might feel he is being robbed at the point of a gun. Truck stop (vendor) repair prices are quite high, and truck drivers are at their mercy, especially in the middle of nowhere. I've often heard the phrase "highway robbery" in truck stop diners. ;)

Just another analogy, I'm sure I'll draw some heat for.

Just open the box and see