New Credit Card 'Checkout Fee' Arrives This Weekend

Party Rooster

Unleash The Beast
Apr 27, 2005
40,284
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The Inland Empire State
#1
Thanks Obama! :cool:

New Credit Card 'Checkout Fee' Arrives This Weekend


Matt Brownell
Thu, 24 Jan 2013 06:00:00 EST DailyFinance News

This Sunday marks the first day that consumers could start paying an extra fee just for using their credit card to make purchases. But don't panic: It's unlikely to kick in right away, especially at the biggest retailers.

First, a bit of background. The fee in question is widely described as a "checkout fee," and starting on Jan. 27, retailers will have the option of charging it on any purchase made with a credit card. The fee came about as a result of a settlement reached in July 2012 between merchants and credit card networks, and is intended to help defray the costs of the swipe fees charged by those networks. As such, it can't be higher than what the merchant actually pays as a swipe fee -- usually between 1.5% and 3% of the transaction.

The settlement was actually merchants' second swipe-fee victory in recent years. The first came in the form of the Durbin Amendment, which capped swipe fees on debit card purchases at 21 cents per transaction. The July settlement didn't cap swipe fees on credit cards, but it did give retailers the right to pass them on to consumers -- if they choose to.

"I don't think we're going to see a mass amount of surcharges come the deadline," said Ruth Susswein of Consumer Action, which has led the charge in educating consumers about the impending fee. Retailers, she says, are more likely to introduce the fee gradually. "It might creep into costs of shopping over time."

Indeed, it's still unclear whether the nation's larger merchants actually plan to take advantage of their new right to add surcharges.

"I would be very surprised if Walmart or Costco or Target or any of the other mega-discount retailers did something like this," said John Ulzheimer, president of consumer education for SmartCredit.com. "Their pitch is, 'Hey we're cheaper than the competition.'" Ulzheimer added that if a big retailer was considering charging the checkout fees, they would start out by testing them in a few select markets to see how consumers responded.

So if you do see checkout fees, it's more likely to be at smaller retailers, which tend not to be winning on price anyway. In fact, Ulzheimer noted, you've probably already seen small merchants charge a form of credit card checkout fee in the past, by offering lower prices to customers paying with cash -- for instance, at a gas station. Now that they're allowed to call the credit card surcharge what it is, more small merchants will try out variable pricing.

Tens of millions of customers will never see checkout fees, though. That's because 10 states have formally banned the practice, a list that includes California, New York, Florida and Texas.

If you don't live in one of those 10 states, though, you could potentially see signs alerting you about checkout fees as early as this Sunday. If you do, you can avoid them by paying with cash or a debit card -- or by taking your business elsewhere.

http://m.aol.com/dailyfinance/defau...-checkout-fee-starts-sunday/&icid=dsk_df_news
 

Konstantin K

Big League Poster
Aug 25, 2010
15,776
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273
#3
As long as this doesn't apply to debit cards, it won't affect me very much.
 

lajikal

Registered User
Aug 6, 2009
16,437
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#6
You can avoid credit card fees by paying with cash? Praise dead jesus!
 

Ballbuster1

In The Danger Zone...
Wackbag Staff
Aug 26, 2002
103,805
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Your house, behind the couch
#7
Smart businesses won't bother. Taking plastic is the price
you pay for getting the business. If I started charging more
people can just go down the street and deal with another
shop. Most people don't plan on having their car break down
and don't always have cash on hand to fix it. If I want them
to keep coming to me, I'll not raise my prices.
 

JonBenetRamsey

well shit the bed
Aug 30, 2005
17,436
8,793
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woodland critter christmas park nj
#8
Smart businesses won't bother. Taking plastic is the price
you pay for getting the business. If I started charging more
people can just go down the street and deal with another
shop. Most people don't plan on having their car break down
and don't always have cash on hand to fix it. If I want them
to keep coming to me, I'll not raise my prices.
sir, that just makes sense. we don't need that kind of commie thinking here in 'merica!
 

weeniewawa

it's a man, baby!!!
May 21, 2005
12,076
1,267
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Hell,California
#9
How long until people demand the gov't step in and "fix" this?
as you know, this what happens when the govt does step in and fix things and I am sure this was to pay back their financial friends who they also gave big bailouts to.

remember when people cried about cable and satellite TV being so expensive?

their bills have only gone up with new charges since the government stepped in and regulated them more
As long as this doesn't apply to debit cards, it won't affect me very much.
they will just charge a debit card fee of like 50¢
 
Mar 2, 2005
6,781
126
578
chicago
#10
slight increase in prices

$X.95
.96
.97
.98 will all become X$.99. the fees can be made up in the shopping cart
 
Dec 8, 2004
49,479
21,306
693
Maine
#13
Smart businesses won't bother. Taking plastic is the price
you pay for getting the business. If I started charging more
people can just go down the street and deal with another
shop. Most people don't plan on having their car break down
and don't always have cash on hand to fix it. If I want them
to keep coming to me, I'll not raise my prices.

I thought about getting one of those square things for when I sell trees... but why should I pay someone a fee for my labor. Really never been an issue though... as who wants to have a month of guilt sitting in their living room. And last year we got a cheque in like April with a note saying sorry it took so long...
 

gleet

What's black and white and red all over?
Jul 24, 2005
22,541
13,853
608
Idaho
#15
This. I get cash back at the POS terminal at the supermarket more often than I use an ATM.
Translation by a pervert:

This. I get cash back at the piece of shit terminal at the supermarket more often than I use an ass to mouth.