Retailers Begin Charging Credit Fees Sunday
A fee of up to 4 percent of a credit card purchase could be added to your bill come Sunday.
Think twice when you pull out your credit card to pay for brunch this weekend.
A controversial federal court ruling last year has given retailers the go-ahead to tack bank surcharges for credit card purchases on customer bills—starting Sunday. Bank fees between 2 and 4 percent of a credit card purchase had traditionally been covered by retailers making the sales, but smaller businesses without the backing of major corporations usually felt the brunt of these charges.
Ten states prohibit passing fees on to credit card users, but Maryland isn't one of them, according to an announcement issued by the Bethesda-Chevy Chase Regional Services Center.
Customers can avoid the charges by paying with debit cards or prepaid cards. According to a Time Magazine report on the issue, stores must warn customers with a sign on the door before charging them the fees, and not all retailers will pass on the fees for fear of alienating customers.
Would you pay extra fees at the register for the convenience of credit cards?
Fred Foo
6:12 pm on Sunday, January 27, 2013
I have no problem with retailers exposing their true costs to me. I do have trouble believing the implication of this article - that companies will raise prices simply because of this ruling. That surcharge is in the final price whether explicitly or implicitly.
In that sense, I'm missing what's newsworthy here. What's significant about this ruling?
Bob
6:12 pm on Sunday, January 27, 2013
So you can be charged up to 4% for using a credit card, which is on top of any interest you may accrue on the charge. Your alternatives are a debit card, which has a fee, or a pre-paid card, which already has a fee (I've seen more than 6% on a $100 card). Use a check, which has its own fees. There are no other-than-cash alternatives, although probably there are some retailers who will also charge for cash. Come on Maryland, prohibit these fees!
I hope the signs that are required are printed in many languages!