Last Sunday, local stores had the opportunity to make a change which may make a big impact on your wallet.
That is when merchants were able to start charging you up to three percent more when you use your credit card as a 'swipe fee' or checkout fee.
This is a story that started almost eight years ago.
Often there are few things in life that move slower than court cases.
This particular story began in 2005 when retailers filed a class action suit against Visa, MasterCard and nine major banks claiming price fixing when it came to transaction fees that merchants pay to the cards and banks.
Last summer a $7.25 billion dollar settlement in the case and as part of the deal the fees merchants pay were rolled back, but only for eight months. As of January 27, in PA it became legal for merchants to start passing on their fees to you.
“I don't have a credit card,” one person told us.
At least he won't have to worry, because many feel that last summer's settlement is punishing the victims, the consumer, by also allowing merchants to start charging you the swipe fees. Ten states including California and New York already have laws that prohibit merchants from passing on these fees, but not PA.
“I will stop using my credit card and I'll also stop my direct deposit and start using cash,” stated Tammy Ryan, who is not happy about the changes.
State Representative Adam Ravenstahl thinks PA should join those states that prohibit the fee telling CBS 21 News, "I’m sick of consumers being nickel-and-dimed and I am preparing legislation to help address that."
“The main reason I use my card now is because I get the cash back, like the one percent cash back with it, so if the fee would sort of negate that it wouldn't make any sense,” said a concerned Dan Benzing.
Last November, the National Retail Federation filed suit in New York to block the settlement. The Neiman-Marcus Group is part of the suit claiming that "raising consumer prices by adding an 'interchange tax' is no remedy for Visa's and MasterCard's continuing monopoly abuse."
MasterCard issued a statement; "We anticipate that they will not impose checkout fees, particularly because the value merchants derive from card acceptance far exceeds their costs,"
Would the fee keep your plastic in your pocket?
“Probably not because it is still convenient,” one person told us.
“Cash, probably debit, pre-paid card,” were some alternatives another person gave us.
All good alternatives as the fees would not apply to your debit card.
Even though it will be lawful to do so, almost all major retailers have said they will not start charging these fees, yet.
That is when merchants were able to start charging you up to three percent more when you use your credit card as a 'swipe fee' or checkout fee.
This is a story that started almost eight years ago.
Often there are few things in life that move slower than court cases.
This particular story began in 2005 when retailers filed a class action suit against Visa, MasterCard and nine major banks claiming price fixing when it came to transaction fees that merchants pay to the cards and banks.
Last summer a $7.25 billion dollar settlement in the case and as part of the deal the fees merchants pay were rolled back, but only for eight months. As of January 27, in PA it became legal for merchants to start passing on their fees to you.
“I don't have a credit card,” one person told us.
At least he won't have to worry, because many feel that last summer's settlement is punishing the victims, the consumer, by also allowing merchants to start charging you the swipe fees. Ten states including California and New York already have laws that prohibit merchants from passing on these fees, but not PA.
“I will stop using my credit card and I'll also stop my direct deposit and start using cash,” stated Tammy Ryan, who is not happy about the changes.
State Representative Adam Ravenstahl thinks PA should join those states that prohibit the fee telling CBS 21 News, "I’m sick of consumers being nickel-and-dimed and I am preparing legislation to help address that."
“The main reason I use my card now is because I get the cash back, like the one percent cash back with it, so if the fee would sort of negate that it wouldn't make any sense,” said a concerned Dan Benzing.
Last November, the National Retail Federation filed suit in New York to block the settlement. The Neiman-Marcus Group is part of the suit claiming that "raising consumer prices by adding an 'interchange tax' is no remedy for Visa's and MasterCard's continuing monopoly abuse."
MasterCard issued a statement; "We anticipate that they will not impose checkout fees, particularly because the value merchants derive from card acceptance far exceeds their costs,"
Would the fee keep your plastic in your pocket?
“Probably not because it is still convenient,” one person told us.
“Cash, probably debit, pre-paid card,” were some alternatives another person gave us.
All good alternatives as the fees would not apply to your debit card.
Even though it will be lawful to do so, almost all major retailers have said they will not start charging these fees, yet.