Checkout Fees: Everything You Need to Know

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Starting January 27, 2013 retailers can charge you a fee when you use your credit card to buy goods and services.

 

Why are retailers now allowed to charge checkout fees?

A recent court settlement between retailers and the payments industry allows retailers (brick-and-mortar stores and online merchants) to pass their credit card acceptance fees onto consumers in the form of a fee. Retailers can decide whether or not to charge this fee provided they first comply with all the specified conditions.

How much can retailers charge?

Retailers can only charge a fee equal to what they pay to accept the card—typically 1 .5%-3% of the entire purchase.

How will I know if a retailer will charge me a fee to use my credit card?

Retailers are required to provide “clear disclosure” or signage in the store entrance, at the point of sale, on their website if it is an online purchase and on your receipt.

Is there anything I can do about these fees?

Know your rights. Retailers must follow specific guidelines so that they are not gauging you or surprising you by the fee. Retailers cannot apply the fee to debit and pre-paid card purchases.

Is this legal in every state?

No! Checkout fees have been and will continue to be illegal in 10 states, including:

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