Monday, January 28, 2013

Are credit card 'checkout fees' coming?

Keep a look-out when you swipe your credit card. It could soon get a little more expensive -- at least in some places.

You might recall hearing last summer about a $6 billion settlement between merchants like Walgreens and credit card issuers and big banks -- like Visa and Bank of America. The stores for years had said the banks and issuers had colluded to set swipe fees and prevent the merchants from recouping any of that money.

Well, one of the main components of the deal allows retailers to charge a small "checkout fee" on credit card transactions, which had largely been prohibited before. That just went into effect Sunday.

Industry leaders generally don't expect to see a swift, sudden move toward these fees, and some giants like Walmart and Target might never introduce them. Big companies introducing unpopular fees doesn't always work out so well.

Small businesses will have to decide for themselves whether they want to go this route.

If a store does decide to charge them, they'll have to provide clear disclosure before a shopper makes the purchase. It'll also have to show up on the receipt.

Update: After seeing some of the comments, I decided to update with more information. This only applies to credit cards, not debit cards or prepaid cards. Merchants still can't add surcharges on debit card transactions.

This is also not part of Dodd-Frank. The confusion comes from the Durbin Amendment of Dodd-Frank, which capped swipe fees on debit card transactions. It got a lot of attention when it went into effect in fall 2011. It deals with a similar topic, but is not the same.

19 comments:

Anonymous said...

Thank you Dodds- Frank

Anonymous said...

Does anyone know if these fees apply only to credit cards, or could they also apply to debit cards?

Anonymous said...

Will these fees also apply to gas pumps?

Anonymous said...

I'll start writing checks instead.

Anonymous said...

To hell with Target and Walgreens in that case. I prefer Wal Mart and CVS anyway. More corporate greed from the wealthy. They will burn in hell for this one day.

Anonymous said...

Just another reason to only buy what you can afford (ie-pay cash / use debit card).

Anonymous said...

Do any of you actually read the article?

"some giants like Walmart and Target might never introduce them"

"This only applies to credit cards"

Unbelievable!!!

Dave said...

"To hell with Target and Walgreens in that case. I prefer Wal Mart and CVS anyway. More corporate greed from the wealthy. They will burn in hell for this one day."

HA! I enjoyed this comment. Nice satire!

Anonymous said...

For those of you carping about potential fees, no one is holding a gun to your head to use your cards. Pay with cash if you dont like it, otherwise, pay up.

Anonymous said...

You have been paying these fees all along anyway. These fees have been rolled into prices since day one.
No fre lunch and all that...

Anonymous said...

Looks like cash is going to become very popular real soon.

Anonymous said...

These fees will apply to credit cards only. And only if the retailer (gas pumps included), decides to add the surcharge to your purchase. These signs must be clearly visible at any place that decides to use this. Debit cards are not included.

Anonymous said...

Not Debit Cards. Does not apply to debit cards.

Word to your Mother.

Anonymous said...

But...but....but...isn't this a "regressive" expense towards the middle class and wealthy who own credit cards....the Liberal Democrats do NOT ask? Oh....we forgot...regressive taxes and expense can ONLY be applied to "the poor". The hypocrisy of Liberal Democrats knows no boundaries or limitations.

Anonymous said...

It is quite entertaining reading all of the knee jerk posts from the right wing Tourette's sufferers under this article about contract changes between the credit card issuers and the merchants.

It appears to them that the loony left wing liberal Democrats are responsible for everything that happens even though there is no government involvement at all.

Ken said...

Haha, those wacky banks, what will they think of next? Hahah, oh well.

Nice of you to play it for laughs, maybe you're exempt Andrew?

Anonymous said...

Another 3 day old story. I guess the reporters read other newspapers, wait a few days and report it here.

Anonymous said...

I am sure the Obama admistration will somehow blame this on Bush.

Ettolrahc said...

So this will slow down those of us who get free trips and gift cards and the like from using our cards and paying them off at the end of the month.

And this will slow down our spending.

So, from now on debit or check, if this happens and less spending.

But then I am sure that is what they expected and those who have to use credit cards will pay more. And who said we had a government that is looking out for the little guy?