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Retailers To Charge Shoppers Using Credit Cards
Boise, Idaho (KBOI) Retailers can now charge you a surcharge just for swiping your card, starting Sunday. The idea is that stores can make up some of the money they spend on fees to credit card companies. But not everyone is on board with the idea.
The new rule is thanks to a lawsuit settlement against Visa, Mastercard and some big banks. So now it might cost you more to put your purchases on plastic.
We visited LUX Fashion Lounge in downtown Boise Saturday to talk about their credit card policy.
Elizabeth– you have to spend atleast 5 dollars for us to charge the card or else it's not worth it for us because we have to pay.
Lux store manager says credit card fee can add up fast and that can be hard for a small business. While they have no plans to charge a processing fee, ... Says they do perfer cash.
Shoppers we talked to Saturday were understanding about the surcharge.
Becky Slomski–"the credit card companies charge them between 2 and 4 percent so it makes sense a little bit and it might stop people from using credit so quickly if they know that it's that much more expensive to use it and i think that's a good thing."
The new rule caps fees at 4 percent. Thomas Rigby says a surcharge would make him think more about how he is spending money.
Rigby–"like a pack a gum that's like a dollar, that's just 4 cents more but if it's like 40 dollars more...probably not."
On the KBOI 2 Facebook page many are saying no to the fee. Like katie who says:
Katie Banks Ursenbach–"I have no problem walking out of a place that decides to do this...in this economy, retailers should respect their customers more."
Consumer groups say they don't expect a flood of surcharges because businesses dont want to lose costumers.
Stores that decide to charge a fee are required to post a sign at the door.
Online retailers don't have disclose the fee until a shopper begins to check out. Something also to keep in mind, ten states prohibit credit card surcharges, but Idaho is not one of them.