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New credit card fee hits consumers in the wallet

Posted by (Carlene :)) on Jan. 29, 2013 at 10:33 PM
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New credit card fee hits consumers in the wallet New credit card fee:

Retailers can charge consumers up to 4 percent now if they pay with credit. IMAGE MSN 1 day ago By Michelle McGuinness of MSN News share tweet email A surcharge went into effect Sunday that allows retailers to charge consumers up to 4 percent when they use a credit card to pay for purchases. Like to pay with credit? It may cost you. A new surcharge went into effect Sunday that allows merchants to pass on a surcharge to consumers who pay with credit cards. The new fee is the result of a settlement between the credit card companies and merchants, according to CNN. The multi-billion dollar settlement was announced in July and it includes Visa, MasterCard and nine major banks, CNN reported. But what does it mean for you? Visa laid out exactly how the new surcharge will affect ordinary consumers' purchases: You will pay an additional fee when you use your credit card at retailers who decide to impose the surcharge. The charge is capped at 4 percent. CNN reported that retailers can only charge enough to cover the processing cost, which is usually about 1.5 to 3 percent of the total purchase. The charge will not apply to debit cards or prepaid cards – only credit cards. Any retail who imposes the new surcharge has to notify consumers somehow, either at the store entrance, at the point of sale or in an "online environment." You will see the surcharge on every receipt, whether you buy online or in a physical location. Not all retailers will impose the surcharge. And those who do have the option of offering discounts to consumers who pay with cash, check or PIN debit instead. Currently, 10 states prohibit surcharging. They are: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas. BUSINESS REACTS Not all retailers were pleased with the settlement that led to the new surcharge, CNN reported. Target said last summer it wants no part in charging the fee "in order to allow Visa and MasterCard to continue charging unfair fees," CNN said. The National Retail Federation and several businesses asked a judge in November to reject the settlement, CNN reported. Matt Kriebel is the owner of a small business in Philadelphia, Spectrum Scientifics. He said has no intention of charging the fee – "absolutely not" – and neither do most of the businesses he knows of. "It pretty much doesn't make any sense for me as a retailer to charge that fee," he said. Kriebel said it would be like punishing his customers. Kriebel went a step farther, dropping a company he ordered bags for his store from because it decided to implement the fee. He said consumers concerned about helping out small business should pay using a basic credit card – "no points, no magic" – because cards with more elaborate point schemes end up costing retailers more. Related from MSN: 5 ways to avoid credit card rip-offs ——

by on Jan. 29, 2013 at 10:33 PM
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Replies (1-6):
SoJosMom
by on Jan. 29, 2013 at 10:37 PM
1 mom liked this
I don't like to curse, but...... What the @#%&!
Posted on the NEW CafeMom Mobile
Alwaysmotivated Carlene :)
by on Jan. 29, 2013 at 10:41 PM

Yes, Curse away, because they are finding all types of ways to hit our darn pockets. Its ridiculous.. So be careful and check your bill.. unbelievable..

Quoting SoJosMom:

I don't like to curse, but...... What the @#%&!


SoKamele
by on Jan. 29, 2013 at 10:44 PM

 Thank you for the down low.........I avoid the news like crazy....but this..just wow.

Alwaysmotivated Carlene :)
by on Jan. 29, 2013 at 10:48 PM

no probs, its just crazy what they are doing?

Quoting SoKamele:

 Thank you for the down low.........I avoid the news like crazy....but this..just wow.


SoKamele
by on Jan. 29, 2013 at 10:51 PM

 Yes, it's crazy.......We only have 1 credit card for emergencies....but it still ticks me off that they are once again trying to wring every little penny they can out of the people.

I'm so sick of the whole.........."take one for the team" attitude.....what happened to us the American people........that we would just roll over and allow this crap?????

Alwaysmotivated Carlene :)
by on Jan. 29, 2013 at 11:00 PM
1 mom liked this

I think they do expect us to take their crap I don't know what choice we have but not to use our credit card, and thats hard for some people.. hopefully, when they see their charges they change their lifestyle...

Quoting SoKamele:

 Yes, it's crazy.......We only have 1 credit card for emergencies....but it still ticks me off that they are once again trying to wring every little penny they can out of the people.

I'm so sick of the whole.........."take one for the team" attitude.....what happened to us the American people........that we would just roll over and allow this crap?????


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