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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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Using cash and coin is good for privacy. It doesn't fit in the data mining databases.

My local post office didn't waste any time, they have a sign

saying there is a .25 fee for every credit card transaction!

"When the power of love overcomes the love of power, the world will know Peace." - Jimi Hendrix

That's nothing. Louisiana government charges $5.

No matter how small the transaction.

I use a credit card...

...to build a good credit history and for convenience. I don't really need it. So if I start getting charged 4% on everything, well I'll just shred it, end of story.

"Alas! I believe in the virtue of birds. And it only takes a feather for me to die laughing."

The only thing using revolving credit builds is debt.

At best, it will get you more offers for more revolving credit.

It does not help and can certainly hurt your ability to get other forms of credit.

Not in my case

I pay off the balance in full each month: no debt accumulation, never paid a cent in interest. Making regular on-time payments in this manner (without accumulating debts) helps your credit record.

"Alas! I believe in the virtue of birds. And it only takes a feather for me to die laughing."

Not sure where you've heard that from. Everything I've ever

read on the subject, even from the credit reporting agencies themselves says otherwise.

I've heard differently

...but anyway it's also rather self-evident if you think about it. No credit is effectively the same as bad credit: no one's going to give you a loan if you lack a credit history. To obtain a credit history, you have to use credit! LOL

P.S. I'm puzzled by why my comment above got so many downvotes..?

"Alas! I believe in the virtue of birds. And it only takes a feather for me to die laughing."

I suppose, but not all credit is equal or desirable.

I guess that was my point.

We are likely both correct.

they already do charge more

to cover their 3% credit card fee. The only difference will be the fee won't be hidden in the price anymore. If they go ahead with this then it will encourage use of cash. However, many merchants won't add it on because it won't be popular with customers. On the other hand, some might use it to lower their prices so they *look* less expensive than their competitor. I'll hope for that and then pay cash.