Retailers in 40 American States Can Now Apply “Checkout Fees” to Credit Card Payments

by Colonel on January 29, 2013

“These so-called “checkout fees” went into effect January 27, and do not apply to debit card payments. The fees are illegal in California, New York, Texas and seven other states.

It is up to individual businesses to decide whether or not to add the fee. They also need to disclose it to consumers.

In 2005, a group of merchants claimed that MasterCard, Visa, and nine other companies including JP Morgan Chase & Co conspired to fix the fees that stores pay to accept credit card purchases.

After years of negotiations the case, which was in the U.S. District Court for the Eastern District of New York, settled. …

As part of the settlement, the merchants are allowed to charge customers a fee equal to the cost of accepting cards, typically 1.5 percent to 3 percent of the purchase price.

” — (Reporting By Atossa Araxia Abrahamian; Editing by Jilian Mincer, Bernard Orr), Copyright 2013 Thomson Reuters

Previous post:

Next post:

Page 1 of 11