News: Visa and MasterCard Credit Card – Additional Surcharge Fees to begin January 27th, 2013

Beginning 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.  These are fees that merchants will add to your bill if you use a credit card at checkout.

VISA

MasterCard

Link: Merchant Surcharging – Understanding Payment Card Changes

What This Means for Consumers:

  • Consumers will pay an additional fee when they use their credit card at retailers that decide to surcharge.
  • Consumers should be aware there are limits to the amount merchants can surcharge. *
  • Retailers are permitted to apply a surcharge to only credit card purchases and cannot impose a surcharge for purchases made using a debit or prepaid card.
  • If retailers intend to impose a surcharge on credit card purchases, they are required to notify customers before customers make an actual purchase at the store entrance and at the point of sale – or in an online environment, on the first page that references credit card brands.
  • Retailers must disclose surcharge fees on every receipt – both in store and online. Carefully review receipts where checkout fees should appear.

*Retailers must limit the amount of the surcharge to the applicable merchant discount rate for the credit card transaction surcharged. In cases where the applicable merchant discount rate exceeds 4% of the underlying transaction amount, in no event can the merchant assess a surcharge above 4%.

News: Visa and MasterCard Credit Card - Additional Surcharge Fees to begin January 27th, 2013

However, it may not apply to all stores:

Credit card surcharges are banned by law in 10 states: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas.

Visa and MasterCard have rules that require retailers to handle credit cards the same way in all of their stores across the country. That means a chain with stores in any of the 10 states where a surcharge is banned would not be able to have a surcharge at any of its stores.

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