(Image: Digital Trends)

BY JASMINE BAILEY

ANCHOR NEVILLE MILLER

A new law taking effect Sunday could require you to pay an extra fee whenever you use your credit card. KSWB has the details.  
 
“The new law comes after a settlement between retailers, Visa, MasterCard and nine major banks. Right now stores pay credit card companies up to three percent every time they swipe your card.”

So this new law allows but does not require, stores to pass that cost onto the you— the customer.  It’s being called a check out fee and could amount to up to four percent of your purchase. But, not everyone will have to worry about the fee.

Ten states prohibit credit card surcharges-California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas.

You also don't need to worry if you're paying by debit card, American Express, or Discover card.

The president of the Retailers Association of Massachusetts told the Boston Harold— even if you don’t find yourself excluded from the list of those who won’t see the fee, not every store will be implementing it.

“[He] doesn’t expect stores or restaurants to start surcharging...for fear of alienating price-sensitive customers. Rather, he expects service providers with ‘captive’ customers — hospitals, doctors’ offices and airlines — to impose the fees.”

But if you do find yourself having to pay an extra fee, the  director of consumer education at Credit.com gave ABC News some advice. She said…

"‘Always have a backup method of payment…Have a debit card, or slip and extra $20 in your wallet.’ You can also let the merchant know you object to the new charge. ‘If enough consumers complain, a merchant will fear losing business and won't choose to pass the charge along.’”

By law, merchants intending to pass the cost along will have to post notices at check out informing consumers of the extra charge. Online merchants will have to post a similar notice to their home page.

New Law Lets Retailers Pass Credit Card Fees to Customers

by Jasmine Bailey
0
Transcript
Jan 26, 2013

New Law Lets Retailers Pass Credit Card Fees to Customers

 

(Image: Digital Trends)

BY JASMINE BAILEY

ANCHOR NEVILLE MILLER

A new law taking effect Sunday could require you to pay an extra fee whenever you use your credit card. KSWB has the details.  
 
“The new law comes after a settlement between retailers, Visa, MasterCard and nine major banks. Right now stores pay credit card companies up to three percent every time they swipe your card.”

So this new law allows but does not require, stores to pass that cost onto the you— the customer.  It’s being called a check out fee and could amount to up to four percent of your purchase. But, not everyone will have to worry about the fee.

Ten states prohibit credit card surcharges-California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas.

You also don't need to worry if you're paying by debit card, American Express, or Discover card.

The president of the Retailers Association of Massachusetts told the Boston Harold— even if you don’t find yourself excluded from the list of those who won’t see the fee, not every store will be implementing it.

“[He] doesn’t expect stores or restaurants to start surcharging...for fear of alienating price-sensitive customers. Rather, he expects service providers with ‘captive’ customers — hospitals, doctors’ offices and airlines — to impose the fees.”

But if you do find yourself having to pay an extra fee, the  director of consumer education at Credit.com gave ABC News some advice. She said…

"‘Always have a backup method of payment…Have a debit card, or slip and extra $20 in your wallet.’ You can also let the merchant know you object to the new charge. ‘If enough consumers complain, a merchant will fear losing business and won't choose to pass the charge along.’”

By law, merchants intending to pass the cost along will have to post notices at check out informing consumers of the extra charge. Online merchants will have to post a similar notice to their home page.

View More
Comments
Newsy
www3