Stores and restaurants
who accept MasterCard and Visa will soon be able to tack a surcharge onto
your bill of up to 4%. Well a few dollars here and there won't seem to be a lot if you use your credit card alot those fees could be over $100 a month. You would be better off paying cash.
The surcharge is fallout from a class-action settlement
reached last July that ended years of legal battles between merchants on the one
hand, and banks and credit card companies on the other.
Ever seen a “cash only”
sign at a mom and pop store or small restaurant ? All retailers have to pay a percentage of their
profits to credit card companies in order to process in-store credit card
payments. Smaller merchants who don't want to take this transaction fee out of
their profits might institute a “cash only” policy. Other stores establish an
unofficial minimum for credit card purchases or factor the transaction fee into
their prices.
The surcharge proposed
by last year’s settlement is supposed to be equal to the cost of processing a
credit card transaction, which usually comes out to about 1.5 to 3 percent of
the purchase. According to the settlement, merchants can’t charge consumers
more than 4 percent. They also won’t be able to add extra fees to debit card
transactions.
Despite the changes, few
merchants seem willing to add to their customers’ costs.
No comments:
Post a Comment