Using Credit Could Cost More

Using Credit Could Cost More »Play Video
BOISE, Idaho - Starting Sunday retailers can now charge you a surcharge just for swiping your credit card. The idea is that stores can make up some of the money they spend on fees to credit card companies.

The new rule is thanks to a lawsuit settlement against Visa, Mastercard and some big banks.

KBOI 2NEWS visited Lux Fashion Lounge in downtown Boise to talk about their credit card policy.

"You have to spend at least $5 for us to charge the card or else it's not worth it for us because we have to pay," said store manager Elizabeth Pochardt

Pochardt says credit card fees can add up fast and that can be hard for a small business. While they have no plans to charge a processing fee, Pochardt says they do prefer cash.

Shoppers we talked to Saturday were understanding about the surcharge.

"The credit card companies charge them between 2 and 4 percent so it makes sense a little bit and it might stop people from using credit so quickly if they know that it's that much more expensive to use it and i think that's a good thing," said Becky Slomski.

The new rule caps fees at 4 percent. But not everyone is on board with the idea.

On the KBOI 2 Facebook page many are saying no to the fee.

"I have no problem walking out of a place that decides to do this...in this economy, retailers should respect their customers more," said Katie Banks Ursenbach.

Consumer groups say they don't expect a flood of surcharges because businesses don't want to lose costumers.

Stores that decide to charge a fee are required to post a sign at the door. Online retailers must disclose the fee during check out.