Merchants now have the right to charge their customers a fee for using a credit or charge card to complete a transaction.
FACT: Credit card companies charge store merchants an "interchange fee" to accept their cards, usually 1.5% to 3% of the customer's total purchase.
- In July 2012, a settlement between retailers and card companies required Visa, MasterCard and several banks to pay over $6 billion, reduced the processing fees for a period of eight months, and gave merchants the ability to charge checkout fees.
FACT: According to the Electronic Payments Coalition, as of Jan. 27, retailers can pass the processing fees they incur from credit card companies on to the customer, in the form of a "merchant surcharge" or "checkout fee."
- The fee does not apply to debit or prepaid cards.
Published in Brief: