It started on January 27th, 2013: merchants in 40 states were allowed to start charging a fee to customers who use credit cards to make purchases. Ten states had already determined this was illegal and now more states are starting to jump on the bandwagon. Mississippi, Hawaii, Pennsylvania, Rhode Island, West Virginia, New Jersey, and Illinois are also reportedly looking at ways to ban the new “checkout fee.”
Not only do the states not like it, but merchants apparently don’t either. Although the ability to charge this fee was a concession in a lawsuit against Visa-MasterCard and what retailers consider “outrageous card swipe fees” many merchants are not going to use it in the fear of losing customers. Many merchants just want the cost of credit card processing fees to be lessened. Smaller retailers say they don’t have the time and expense to go through the process of being able to charge the fee (they must notify Visa/MasterCard, have their receipts print a separate line showing the credit card surcharge, and they have to had adequate signage in the store).
It’s interesting to note that other countries have fought to be able to charge credit card customers an additional fee and when the right was granted to them, most merchants don’t go through with it.