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Retailers May Begin Charging Swipe Fees on Credit Card PurchasesBy Wise Bread | U.S.News & World Report LP – Fri, Jan 25, 2013 10:58 AM EST.. .If you've started taking a closer look at your budget for the New Year and are trying to scale back some of your extra expenses, don't overlook your credit card statements for extra fees in the near future. The consumer advocacy group Consumer Action advises consumers to be on the lookout for "checkout fees" that some retailers may be tacking on to credit card transactions starting January 27. While this practice is banned in 10 states, consumers are encouraged to be on alert for these fees that would legally be passed from merchant to consumer. Here's what you need to know:How credit card swipe fees work. Last summer, a settlement following a lawsuit that was filed in 2005 against MasterCard, Visa, and some financial institutions made it possible for merchants to impose a "checkout" fee that would amount to about 2 to 3 percent of purchases charged to a credit card. This has been an ongoing battle involving banks and major credit card companies including MasterCard and Visa, and on January 27, merchants in the United States and its territories will have the option to add a surcharge to either all credit card transactions they process or to certain types of credit card transactions.From a consumer's perspective, now may be a good time to consider how much credit and debit payment systems are benefiting them.Retailers have long been complaining about swipe fees where credit card processors charge a fee to the retailer every time a customer uses a credit card to pay for their purchase. After the settlement and new agreement, some retailers would be permitted to impose a surcharge for credit card purchases.Before the class action settlement, Visa and MasterCard prohibited retailers from adding a surcharge to consumer credit card purchases. Now, retailers have the option of charging a checkout fee. In the event of a return, the prorated surcharge could be refunded as well.Who will charge checkout fees? Ultimately it is up to each retailer to determine what the price of certain products and services are, and what types of payments they accept. Consumer Action reports that retailers are still required to limit their fees and the typical charges will range between 1.5 and 3 percent of the credit card purchase. Retailers are also required to disclose what the fees are on the customer receipt and post signs that they are imposing checkout fees on credit card purchases. Checkout fees vary from card to card, so retailers must also disclose the fact they are not imposing any charges that are higher than the costs they assume to accept different types of cards. Consumers shopping with these merchants should be aware there is an added charge to the transaction and can make their purchasing decisions accordingly.
Retailers have long been complaining about swipe fees where credit card processors charge a fee to the retailer every time a customer uses a credit card to pay for their purchase. After the settlement and new agreement, some retailers would be permitted to impose a surcharge for credit card purchases.Before the class action settlement, Visa and MasterCard prohibited retailers from adding a surcharge to consumer credit card purchases. Now, retailers have the option of charging a checkout fee. In the event of a return, the prorated surcharge could be refunded as well.
I use American Cash....don't leave home without it.
My bank fees for accepting credit cards runs over $600 a month.
We don't pay any bank fees. Yet.
Did I misunderstand your statement? I thought you meant fees for a bank's debit/credit card.
Well, it's buried in the pricing structure, you don't see it. The business still has to pay it in a lump sum to the bank.