Potential Merchant Surcharging on Credit Cards
As of January 27, 2013, merchants in the United States and U.S. Territories will be permitted to impose a surcharge on consumers when they use a credit card.
The National Association of Federal Credit Unions was quotes as saying, 'Ultimately, it is unknown how prevalent merchant surcharges will be, but it is important to let members know of the possibility and what disclosures to look for.'
The surcharge is supposed to equal the actual cost of processing the credit card transaction, which is typically 1.5 to 3 percent. Under the agreement, the fee is capped at 4 percent and does not apply to debit cards. There are ten states that prohibit the credit card surcharge being imposed; unfortunately, Ohio is not one of them.
This surcharge applies to all credit cards, but Visa does a great job explaining the new merchant surcharging. Please take a moment to become familiar with the potential new fee, and what to look for at retailers.
