Merchants trying to recoup processing fee.
Cash or Credit? You may want to think twice before swiping your card the next time your out shopping.
Just as consumers start to pay down their credit cards after the holidays, some retailers are quietly preparing to add a new fee for those who choose plastic over cash.
As part of a $7.2 billion settlement with Visa and Mastercard, Gail Cunningham with the National Foundation for Credit Counseling says merchants can begin charging up to four-percent of your purchase for swiping your card.
“The merchant cannot assess more than they actually paying for the processing fee, that's typicall between 1.5 and 3%,” Cunningham tells KTRH News.
There is good news for Texans however, the state and nine others have banned the practice. But Cunningham says shoppers still need to be aware whether traveling or buying items online.
“They need to post it at the store entrance that the new fee may be added to your charge,” she says. “And also again there should be a notice at the actual point of sale, if you're dealing with an online site it will be on their homepage.”
