Yesterday, I heard about a change with Credit Cards on the radio. As of now, stores can charge a 4% Surcharge if you pay with a VISA or MASTERCARD while checking out.
Stores like Walmart and Target have stated that they will not be adding on that surcharge to your total. However, you should be watching for it. And pay close attention to your receipts!
California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas are the only states that are safe from the Credit Card Surcharge that just started. So if you live in one of those states, consider yourself lucky!
The tricky thing about this new surcharge is that online merchants only have to mention it ONCE somewhere when you first see their CC offer. Then, it doesn’t have to be mentioned again. So you will more than likely miss any information about there being a charge.
For more details, you can read about it here on CNBC. But just wanted to give you all a heads up. This surcharge won’t apply to Debit Charges… only CC charges.
Rhonda
Being an owner of a small business, it stinks that anytime a customer pays you with a credit card, you are charged a percentage on the sale. We accept credit cards in the hopes that people will pay faster, but in return we are penalized. And when someone disputes a charge, you might as well give up as they always win. 🙠So I understand where this charge is coming from.
It stinks on both ends…as a credit card holder and as a business accepting credit cards. ðŸ™
Nicole Westmoreland
I agree 100%, Rhonda! Being a small business owner, we pay thousands a year. The convenience of accepting CC vs. waiting to get paid is expensive. The amount the CC companies charge the merchant is ridiculous.
Tiffanie Feher
I agree too. It sucks as consumers but it sucks even more as a small business owner. Over half my sales are credit/debit cards and it eats a big chunk. Maybe we need to start doing what some gas stations do, have a cash price and a credit price. I wonder if consumers realize how much we’re losing because they pay with a card instead of cash.
Cyndy
Does this apply to Discover, American Express, etc. cards?
Aimee Johns
Yes it does. When you run any card as a credit, it will get a surcharge fee. Even if you run your credit card with a pin. WHich I do not recommend because it will get a cash advance fee.
Natalie
No, its DOES NOT apply to those, this is Visa/Master Card only. American Express does not allow any surcharges. And because AmEx does not allow it, any merchant who accepts AmEx can not charge the surcharge on Visa/MC either. They either have to not charge or drop AmEx.
Jamie
thanks for the information i wasn’t aware of this, and luckily I don’t even know my cc pin numbers.
Kristy
Is this just credit cards, or debit cards as well?
Erica Nelson
Only credit cards
Wendy Butler
The National Retail Federation points out that under terms of the settlement, a merchant who adds a surcharge to purchases on a Visa or MasterCard would have to do the same with American Express cards. But AMEX prohibits surcharge fees. So a merchant who accepts American Express as well as Visa/MasterCard would not be able to surcharge any of those cards.
Erica
I didn’t know about this. I’m so glad you posted it. Maybe I will have to start asking before I pay if there will be a charge to use my Visa.
Christine
Yet another reason not to use credit cards!!
Aimee Johns
I work for a financial institution and was informed of this earlier this week. This only applies to Credit and debit cards run as credit. If you use your credit card with a pin it will process as a cash advance and also get that surcharge fee. If you use your debit card with your pin, it will not process it with a surcharge, but just double check your receipt. I highly recommend getting a checking account and using your visa debit card with your pin number so you can avoid this fee. If you choose to use a credit card that is fine but you might at some merchants, get a surcharge fee. 🙂 Hope this helped!
Kristy
I wonder if the surcharge would also apply when using a credit card online?
Jamie
Thanks for the information when will these surcharges take affect? if mastercard does this I will not use that card and use my amex instead. Plan b I will use my mastercard debit but then you risk debit card safety?
Monica
Yeah I saw it on the news last night. They are required to post a sign on the checkout stand, the news reporter said, on the post holding up the aisle number. Stating that if you use your credit card they will charge you the fee. Walmart says they are not going to participate. Target says they are taking the fee hit for the customer, (as a way to get more business.) I think online the fee will be the most unnoticed. But still check your reciepts and pay attention.
Abbie
According to the news yesterday, add Utah to that list: “Business in Utah as well as in 40 plus states can now tack on a surcharge as much as four percent anytime you use your credit card.” – ABC news
Devon
So does this include bank cards, that have the visa or mastercard logo on them, that are ran as “credit” not “debit”?
Aimee Johns
Correct. Run as credit, not debit.
Devon
Thank you.
Stacey
CNBC stated the following:
Visa and MasterCard have rules that require retailers to handle credit cards the same way in all of their stores across the country. That means a chain with stores in any of the 10 states where a surcharge is banned would not be able to have a surcharge at any of its stores. Those states are California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas….
CNBC also quoted a rep from the NRF “The bottom line is that very few retailers would be able to surcharge under the settlement, and that the vast majority don’t want to surcharge even if they could.
The article also states that this is just the preliminary ruling, and nothing has been finalized. Finalization of this settlement could take a couple of years with various business groups challenging the ruling. It may actually never happen but they just want to make people aware of possible scenarios.
Amanda
Thank you Stacey. That was interesting and less unnerving. I am grateful for the heads up but as someone who uses credit for EVERYTHING to earn rewards/miles, I was freaking out. Good to know!! Thanks again!
Mindy
Here is a link with info about it: https://www.khq.com/story/20717265/another-credit-card-fee-begins-today
Erica Nelson
Another reason not to use CC, but there are times you need to use it or if you are earning rewards. I use my CC for trips or book airline tickets or any real big purchase. Now I’m not to sure about doing that. =(
Karen
Just to be clear…Discover is not charging the 4%?
Pamela DeGraw
does this include Discover card?
Rachael
Okay, as a business owner, you pass on costs to the buyer all the time. When you run a successful business you take all your costs and then figure out what you need to sale your products for. This hurts anyone who has been savvy with their credit cards and their couponing/shopping because your cash back or rewards are now fairly null and your big saving items are taking a hit with another fee atop your tax. Don’t be fooled that businesses didn’t already pass the cost onto us and don’t think they won’t use this now for a burst of instant profits.
Mimi
A mistake on any store’s part I say. People, myself included will start using cash only at stores that do in turn will cause them to have a lot more cash on hand in the store. In which in my opinion will only cause them more headache and trouble or even worse with getting robbed because if we know this you can bet the ones that would want to rob them will too!!
Serena
I will not shop at a store if they add this fee, I will take my business elsewhere, already I won’t get gas at gas stations that charge more if you use a credit card.
Jamie
which national gas stations do this? i wasn’t aware of this.
Mandee Richards
If you read the article, it’s pretty clear that the majority of retailers will not be participating in this. It would ultimately damage their bottom line. A sign has to be posted at the front door of any store who is participating and if they are an online retailer, they have to disclose it at checkout when you come to the point of entering your credit card info. So if you are paying attention at checkout, you won’t miss the fee. Overall, I personally wouldn’t be overly concerned about this. You can always shop somewhere else.
Elle
I too own a small business and my husband owns a rather large one and it makes me laugh at the few ladies who own businesses and say credit cards penalize them. Welcome to the 2013 ladies! If you want to own a business you have to take credit cards. They are a heck of a lot better then checks and if you feel like you are losing out, then factor that into the price of your goods. I don’t feel sorry for any store owner who feels like they loose out by taking credit cards. I feel sorry for the consumer if they are charged a fee. I say if a business doesn’t take credit cards or charges you, take your business elsewhere. My family businesses will not do that and we welcome you:)
Cindee
I completely understand the cost of credit cards to businesses, especially small businesses. And I have asked if they would be willing to give me ANY discount for paying cash, but nobody has agreed. When that happens, I don’t feel bad about using my card if they would rather pay the company than give me even a small discount. That includes our orthodontist and his HUGE fees! Until there is an incentive to pay cash (and this fee may very well help with that), it is far more convenient to use my card for all my purchases, pay it off in full with one transaction per month, and rack up bonuses with my credit card company.