Using Credit Could Cost More
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.
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.
Quoting: "The new rule caps fees at 4 percent". That doesn't sound bad until you realize that if you make a $3000.00 purchase at the furniture store and use your credit card to pay, that 4 percent surcharge is a $120.00 windfall for the seller.
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John West has the right idea...Use your credit card for EMERGENCIES ONLY. All other purchases should be paid for in cash. It is also permissible and reasonable to pay by personal check, assuming you keep enough money in your bank account to avoid check cashing fees.Â
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Because of excessive use fees one major credit card company has already seen it's acceptance banned at many stores. The same could happen to other credit card companies who insist on charging exorbitant use fees. Stores could make the surcharge directly dependent on what a particular credit card company charges. Posting this fee at the checkout station could help make users aware of which credit card company charges less and which ones charge more. This could add an element of competition to the credit card business and thus bring down card usage fees because no credit card company wants to be seen as the most expensive provider. If all credit card companies get together and agree on a standard charge they could be fined for conspiracy and price fixing.Â
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FIGHT BACK! TAKE CONTROL OF YOUR MONEY.
NOTIFY YOUR CONGRESSPERSON EVERY TIME
YOU FEEL THAT YOU ARE NOT BEING TREATED
ETHICALLY AND FAIRLY!
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Why do not the people use credit cards as intended as credit for emergencies, and backup on vacations,, not for Discretionary income spending  and then pay these off, not by minimum payment, but by a fixed amount,  as any borrowed loan money from the distribution of their equity of their assets?
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