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Buying ONLINE goes up 4% TOMORROW*A MUST READ***

Most customers are surprised to find out that there is a new 4% credit card surcharge when they pay with a credit card; online and in stores. Merchants are now legally allowed to charge customers up to an extra 4% for using their credit cards.

“Starting on Sunday, retailers will be allowed to tack a surcharge of up to 4% extra onto your tab if you want to pay with a credit card.”

For years, most credit card issuers have been charging merchants “so-called interchange fees” which earned credit card companies a lot of money.

After the multi-billion dollar proposed legal settlement, merchants can do to customers what has been done to them for a long time; charge customers a credit card fee; -- up to 4%.

“In a contentious legal ruling that still is being disputed, a U.S. District Court determined last year that merchants are allowed to pass along the cost of those credit card interchange fees to customers,” reports Time.

Not all states and not all credit card companies are involved in the new credit card surcharge changes. The credit card surcharge does include Visa/Mastercard but not American Express.

Some states have protection laws for customers regarding credit card fees and surcharges including California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma, and Texas.

However, as with most laws, whether the credit card protection law in each one of those 10 states is being followed or not is a different story.

The watchdog group Consumer Action emphasizes that different credit cards will have different surcharges and it is the customers’ responsibility to be aware of what store charges what fee for what credit card.

Customers tend to spend up to twice as much by using credit cards. Banking expert Dennis Moroney told Time earlier this month that “credit cards are a big profit center for banks. They’re not going to let that revenue stream plummet over what’s essentially a 2% or 3% annoyance tax.”

Online purchases will most likely also be affected by the new credit card surcharge. Online merchants do not have to disclose the new credit card surcharge until a customer checks out. “Advocates worry shoppers will be too invested at that point to be dissuaded by the charge and will just suck it up.”

It will be interesting to see how many stores will actually post a sign at the door informing customers that they have to pay an extra 4% credit card surcharge.

article from...http://www.examiner.com/article/credit-card-surcharge-new-4-credit-...

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Comment by Jan Carter on January 29, 2013 at 21:49: OK, so a bit more info

Debit cards and prepaid cards are NOT to be charged the fee(even if the PIN is not used)

Merchants are on their own on this. They make the decision to charge or not. I am glad to say all the knife folks that have replied at this time say NO

Comment by Sue OldsWidow on January 29, 2013 at 21:43: wooohooo....maybe we can go back to personal checks.....

Comment by Lee Smith on January 27, 2013 at 21:32: makes me glad to be an okie

Moderator Comment by Ron"TUNA"Dumeah on January 27, 2013 at 20:48: I still cant belive this....I hate how they just keep grabbing for the cash...loyal customer or not!

Comment by Steven Matthew on January 27, 2013 at 20:45: Just flat out troubling

Comment by Jan Carter on January 27, 2013 at 18:52: Craig,

A debit card run without the PIN is perceived by Merchants as a credit card. I will have some more info on this during the coming week and will get clarification on that

Your welcome Max, if you see a dealer saying they will not charge it, lets get them on the list

Comment by Max McGruder on January 27, 2013 at 0:46: Thanks Jan for the heads up!

Comment by Rick Hooper on January 27, 2013 at 0:19: Another fee, like the credit card companies need another income source! I'm sure feebay/paynow will jump aboard both feet first!

Moderator Comment by Ron"TUNA"Dumeah on January 26, 2013 at 19:14: rip off!

Featured Comment by Craig Henry on January 26, 2013 at 17:29: I've heard that it will not apply to debit cards. I have a debit card that I use just for knives.