Beware of latest new fee when using credit cards

[Ken H.]

New "Checkout Fee"

 

I have no knowledge of this being planned in Canada, but if it does it will impact our charge everything on no-fee credit cards, pay off in full each month, then cash the points purchase stratagy we use.

[Joe Frickin' Friday]

Very few merchants will be able to implement it:

 

-there are ten states where the fee is still not allowed by law. Any corporation which does business in those states will not be allowed to charge the fee in other states. In other words, any national retailer/chain can't charge the fee.

 

-Visa/MC rules require that their cards be treated by a merchant in the same manner as other cards that are accepted by that merchant. American Express does not allow merchants to charge a fee. Therefore, if a merchant accepts AmEx, they will not be allowed to charge a fee for customers to use Visa/MC.

 

Of the remaining few that can implement it, it's a fair bet they don't want to discourage card use. Cash transactions are a major security risk. If you run a store or a gas station in a sketchy neighborhood, would you rather have a register full of cash, or a register full of receipts for CC transactions? If you run a cash business, you are at risk for theft from robbery during store hours, theft by employees at any time, and robbery of any employee who is taking that cash to the bank.

 

You may see the fee pop up at a few podunk gas stations, but no, this ain't gonna be widespread (for now).

[Dave McReynolds]

At the end of the articles I've read they go on to say most retailers don't plan on charging a swipe fee. I'm sure it's already built in anyway.

 

A 3% discount for cash or check is big around here, I assume it's that way all over.

 

I've wondered about that over the years. I almost reached the conclusion that offering a discount for cash payment violated the credit agreement the merchant had with the credit companies. A few times over the years when I've been equivocating over whether to buy something or not, I've offered to pay cash or check for a small discount, but nobody has ever taken me up on it, so I stopped doing it. I've even offered to pay cash or check to merchants I know and want to support, without asking for any discount. Nobody has ever taken me up on that either. They just say, "pay however you want to pay."

 

Edit: I see Joe answered my question already before I posted!

[Nice n Easy Rider]

I've noticed that whenever I gas up at my local BP station there is an extra, separate $1.00 credit card charge on my account (checking it via online access). After a few days this extra charge disappears. I figured that BP had implemented their cc system to automatically add this extra fee and then it those states where it isn't allowed it is removed.

 

This is only my theory since I haven't had the ambition to sit on the line to discuss it with an account representative in some foreign country.

[Quinn]

Can you just tell the machine that it's a debit card? I assume they have no way of telling if they're having to ask.

 

I remember years ago Gulf (now BP) having a subheading on their bill about same price cash or credit and my only reaction at the time was Well, yes, of course. Now I see where this was coming from.

 

 

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[1springer]

Then there are the gas stations who charge an extra 10 cents a gallon if you use any other CC except theirs.

[beemerboy]

I've noticed that whenever I gas up at my local BP station there is an extra, separate $1.00 credit card charge on my account (checking it via online access). After a few days this extra charge disappears. I figured that BP had implemented their cc system to automatically add this extra fee and then it those states where it isn't allowed it is removed.

 

This is only my theory since I haven't had the ambition to sit on the line to discuss it with an account representative in some foreign country.

 

The $1 transaction is only a "ping" against your account to make sure it's valid prior to letting you pump the gas. It disappears once you've completed the transaction and the actual purchase amount is posted against your account.

[longjohn]

Then there are the gas stations who charge an extra 10 cents a gallon if you use any other CC except theirs.

Yep, I stopped in at a Mobil station and saw that. I only put in a few gallons and went elsewhere to use the amex that gives 3% back on gas purchases.

[Gregori]

There are a LOT of gas stations who put the cash price on the big sign out front, which is 10 cents cheaper than the credit price. I routinely skip those stations for ones that don't pull that BS. (Even if the actual gas price is the same.)

[Shaman97]

Watch for the CC companies to add the charge to the customers. They gotta make the $$ back some way.

 

[Bob Palin]

Watch for the CC companies to add the charge to the customers. They gotta make the $$ back some way.

I think you have mis-understood, the charge is to the customer not the CC company.