This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Will Retailers Start Charging For The Privilege Of Paying With Plastic?

Your morning latte may be getting more expensive. No, the coffee shop isn't raising their prices, but they may start charging you an extra fee if you plan on paying with your credit card.

It's just the latest tactic allowed by retailers who don't appreciate $1 purchases paid for with Visa and MasterCard. Back in 2010, Congress gave businesses its blessing to impose $10 minimums for credit card transactions. Now, a class action lawsuit is going a step further and saying merchants can pass along 'swipe fees' to their customers.

Everything you need to know about checkout fees

Swipe fees are the cost charged to retailers by credit card companies. Depending on the transaction, card issuing banks have been able to assess a 1.5-3 percent fee to merchants in exchange for processing a credit payment.

Previously, retailers had to eat this cost. However, 19 businesses, including big names such as Kroger and Target, brought a class-action lawsuit in 2005 against credit card companies and issuing banks to force a change to swipe fee policies. Earlier in 2012, the courts came to a settlement that allows merchants to pass along swipe fees to their customers in the form of checkout fees.

Here's the skinny on the checkout fees that may debut this month:
  • Checkout fees can only apply to transactions made with credit cards and not debit cards.
  • Retailers charging checkout fees must clearly disclose them at the store entrance, at the point of sale and on receipts. Online merchants must also clearly disclose the fees on their website.
  • The fee cannot be more than the actual cost incurred by a retailer to accept a credit card payment, typically between 1.5 and 3 percent of the purchase price.

Fortunately, if you are lucky enough to live in one of these states, you don't have to worry about checkout fees: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs