Using credit card could cost shoppers more

FORT WAYNE, Ind. (WANE) - One swipe of your credit card could end up costing you more because of a recent settlement between credit card issuers and businesses.

As a part of that settlement, business owners can now decide if they want to tack on extra fees for customers who use credit cards or make the decision to pay the fee themselves.

The settlement only affects credit cards, debit cards are not affected, according to the Wall Street Journal.

The owner at Books Comics and Things in Fort Wayne, Tracy Scott, says he will not be adding the fee for his customers. However, customers must spend at least $5 to use plastic at his store.

"An additional surcharge is something we're going to try to avoid for as long as we can," Scott said. "People just don't need an extra percentage. I'll continue to absorb the fees."

If fees do get too high, some owners are considering giving discounts to customers who use cash. However, if businesses are going to pass the surcharge on to customers, whether in-person or online, bank officials said customers must be told before a purchase is made. They must also print the extra charge on the receipt.

Retailers can choose how much their fees will be, but they can't be more than four percent.
Bank officials say this will mostly affect small businesses.

"When we first started about 10 percent of our business was credit card, probably 10 percent checks and the rest cash, now it's easily 70 percent credit cards," Scott said.

There are 10 states that are prohibiting the surcharge: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas.