Watch for Credit Card Surcharges Starting January 27th
If a merchant decides to adopt this surcharge, also known as a checkout fee, you could see your purchase amount during a transaction increase up to as much as 4.00%. For example, if you made a $50.00 purchase with your credit card, a merchant could actually charge you $52.00 for using your credit card instead of paying with cash or your debit card.
An additional fee that a merchant (retailer) adds to your purchase when you use a CREDIT CARD for payment.
How will I know if the merchant is going to surcharge my credit card?
Look for signs or postings at the store entrance and the point of sale warning of merchant’s fee. Carefully review your receipt; merchants are required to disclose the actual dollar amount of the surcharge.
How much can the merchant charge?
They may not charge any more than the applicable merchant discount rate for the credit card transaction. The rates are generally between 1.5% to 3%, but in no case can be higher than 4%.
No. Regardless of how your debit or prepaid card is processed at the point of sale, surcharging is NOT permitted.
No, merchants can choose to charge or not. The 10 U.S. states have laws restricting merchants from surcharge on credit cards are California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas.
To report excessive payment surcharges, or surcharging debit and prepaid card transactions, you can visit www.visa.com/checkoutfees and fill out the Report a Merchant Violation form.
As with any other type of store, the online stores are required to disclose if they will be imposing the credit card surcharge.
For more information, you can visit www.knowyourcard.org.