Monday, January 28, 2013

Swipe a Card, Pay a Fee.



Swipe a Card, Pay a Fee.
A new settlement made by major credit card issuers are giving retailers the option to add on an additional fee if a customer uses a credit card.

Visa, MasterCard and nine major banks agreed to a $7.25 billion deal to settle charges that they were fixing credit card processing fees.

The retailer can only charge enough to cover the processing costs, which is about 1.5% to 3% of the total purchase. These fees are not included with the swipe of debit cards though. Also there are 10 states in the U.S. that will not allow this new fee to be charged.

Major retailers believe that this new fee charge is bad for both the retailers and customers. They fear that the fee will drive away customers and lose business.

Last summer, Target said it had no interest in charging customers who use credit cards more "in order to allow Visa and MasterCard to continue charging unfair fees.”

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