Will the Possible Imposition of Credit Card Fees Change Your Spending Habits?

A fee of up to 4 percent of a credit card purchase could be added to your bill.

You may want to think twice before you pull out your credit card from now on. According to Time Magazine, a controversial federal court ruling last year gave retailers the go-ahead to tack bank surcharges for credit card purchases onto customer bills from Jan. 27, 2013. Bank fees between 2 and 4 percent of a credit card purchase had traditionally been covered by retailers making the sales, but smaller businesses without the backing of major corporations usually felt the brunt of these charges. 

Ten states prohibit passing fees on to credit card users — New York, California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, Oklahoma and Texas — but not Georgia.

Customers can avoid the charges by paying with debit cards or prepaid cards. According to a Time Magazine report on the issue, stores must warn customers with a sign on the door before charging the fees, and not all retailers will pass on the fees for fear of alienating customers.

Will this change your future shopping habits? Are you more likely to avoid paying with a credit card in the future?

Tammy Osier January 27, 2013 at 10:53 PM
How much of a fee?
Sharon Swanepoel January 27, 2013 at 11:54 PM
Between 2 and 4 percent - they don't have to pass it on to the customer, but they can.
Tim January 28, 2013 at 01:22 AM
I'm at the point in my life that I will not use credit cards anymore.
American Patriot January 28, 2013 at 01:25 AM
I am with Kristi. I would take my business else where. Tired of hearing small businesses complain. No one said business would be easy. Suck it up work harder and smarter and you wont have to worry about a few pennies.
R++ One of the Famous Dacula Crew January 28, 2013 at 03:23 AM
Well some of us weren't interested in giving up another 1 percent for T-SPLOST, LOST or any more SPLOST flavors at this point... Based on that, I can't see gleefully giving up 3 or 4 percent MORE just to use a card.
Jana Crump-Aquino January 28, 2013 at 04:47 AM
I'd think they'll have to post on the front door if they are gonna pass this fee on, right? So if they do, I won't walk through the door. So they think I'm gonna pay for them to have my business? It's already in the markup of their products. This is just stupid. I'm not gonna pay extra. If they want my business, they'll have to not charge.
Glenn January 28, 2013 at 12:43 PM
Credit Card companies have always exploited retail businesses and consumers. I I am not surprised retailer's trying to pass any and all credit card fees/expenses on to their customers. It is just the normal course of business. However, educated consumers and competition could limit abuses. Credit cards are now just a costly convenience. Get ready to pay state sales tax on all your internet purchases.
Ben January 28, 2013 at 01:11 PM
I am a Service Contractor Painting & Carpentry, I do take the Credit Cards, NO, I would not charge any of my Customers a service charge to put there Payment on a Credit Card, THe Discout, I pay, Runs Approximately 2.91% Plus the Monthly Service Charge. I have gotten a lot of Business by taking the Credit Cards. Other wise some people could not get some of there problems weither in my Line of work, Car repairs, applance Repairs done.
Beryl James Barlow January 28, 2013 at 01:47 PM
Maybe, just maybe most prices already take into account 2-4% fees. If so we will be paying these fees twice.
Ben January 28, 2013 at 02:37 PM
To Beryl James, Somethings, I sure the Discount is in the Price, I wish, I could figure it in my prices, But I don't, I figure the extra 3% rounded off is Better to make 3% less than nothing and we hope that Customer will call us again and refer us to someone else also. Which that has happened many times over. It works for us.
John B January 28, 2013 at 02:47 PM
You are a good man Ben....unfortunately not every business owner small or large will exercise the same level of integrity. My guess is most businesses will bury the fee in their price but market themselves as "fee free."
Ben January 28, 2013 at 02:54 PM
To John B, Thanks of the Compliment, I have been in this business since 1979, we had good & bad times, I have, 11- Legal all American Employee's, They have families also, I try to keep these people working, So I am not letting 3% Stop me from getting paid or making a sale. again Thanks for your Commint
Mark Henderson January 28, 2013 at 03:25 PM
Five years and counting, No credit cards!!
Jim S January 28, 2013 at 03:49 PM
Am I the only one who sees a future of rising robberies because people will be carrying more cash? And what if these robbers carry guns? Will this not increase the amount of gun crime? Will this not cause citizens to feel the need to carry weapons to protect themselves? But wait...the government just put a ban on certain types of weapons.... classic case of circular logic....
Elizabeth January 28, 2013 at 04:14 PM
JK, my husband and I were thinking the very same thing yesterday about more robberies, especially of women at Christmas as they shop for family and friends. I use a credit card for the convenience (and for the discount sometimes if you use a department store credit card), but will start writing checks to stores who charge a CC fee. Does anyone else remember the day when, if you make a large purchase (furniture, washing machine, dryer, automobile) using cash, you would get a 10% discount?
Charlie Russell January 28, 2013 at 05:23 PM
Why has no one asked about our state representation? As a former Texan, I can assure you that GA manages to tax you on everything but air. Gwinnett county charges each homeowner for a "rain" tax. Why does GA allow this sort of thing? Texas and other states do not. Why are we taxed on any internet purchase? According to Gov. Deal's office it is because the "Mom & Pop" stores can't compete. Guess Mom and Pop didn't know that one has to pay shipping and handling costs when buying from alternative sources. As for this new one? I don't have to buy except what I HAVE to have. Strip malls are empty. Look for more to close their doors. Oh, and call your Governor. I did.
Ethan Smith January 28, 2013 at 09:32 PM
Does anyone know which stores are going to start charging this fee so we can avoid them?
Vanzetta Evans (Editor) January 28, 2013 at 11:27 PM
Ethan, most major stores like Walmart and Target are able to negotiate rates with the credit card companies, so they most likely will not be charging the fee. This will primarily affect smaller businesses-- the mom & pop stores-- who will have to decide whether to charge the fee, raise prices 4% or eat the cost. But here's a partial list of members of the National Retail Federation: http://www.nrf.com/modules.php?name=Pages&sp_id=445 The NRF did a survey and found that none of their members are going to charge the fee.
R++ One of the Famous Dacula Crew January 28, 2013 at 11:51 PM
Interesting, as Kroger was listed as a member of the actual lawsuit / settlement that set this "fee program" in motion... I'll be watching the door for the notice BEFORE I purchase...
Msgoff January 29, 2013 at 12:03 AM
Not to mention the cost of "bad" checks!
Charlie Russell January 29, 2013 at 12:51 AM
Had a few comments from my earlier post. Has anyone considered walking out of any store charging this fee AFTER they have rung up your purchases? If Kroger is behind this legislation, then they might find themselves having lots of overtime pay for restocking. As for me, I won't be buying where this additional tax is charged. I would like to know started this, but I am convinced we have no protection from such things with our present elected officials.
Jim S January 29, 2013 at 12:56 AM
So this means that the Mom and Pop stores, long lauded and supported as the 'Backbone' of our middle class, are going to get smacked down again. How can the small businesses continue to operate when we are all planning to boycott them because of this extra tax. This stupid rule will only make the banks and credit card companies richer. The lawmakers are talking out both sides of their mouths...watch for the surprised look!
Msgoff January 29, 2013 at 03:03 AM
I'm wondering why GA chooses not to prohibit passing these fees on to consumers. If anyone knows the reason, please share it. It seems there is one financial setback after another. We are asked to help finance a football stadium!! I am at a loss!
R++ One of the Famous Dacula Crew January 29, 2013 at 03:41 AM
Yes, that is an option if you don't see the notice beforehand. You might be surprised how much restocking they actually do for one reason or another at the register now, I've seen a few cases of it recently.
Charlie Russell January 29, 2013 at 08:05 PM
The reason is this: While claiming to be against "taxes" they proceed to tax us on every single thing they can. The screaming about being unable to conduct business is accurate, but it can be traced to our local, county and state regulators where there are tremendous advantages to these elected officials to create false barriers for people to jump through in order to get work. If you have to pay to take this course, or pay a fee for another license, then who benefits? Not the would-be worker. This governor (and I did vote for him) hasn't found a tax he doesn't embrace, nor a business for cronies he doesn't make mandatory. Look it up. This is no different and will not help the small businesses he claims it will.
Charlie Russell January 29, 2013 at 08:08 PM
Please call the Governor and ask why. If he gets his phones slammed for a week or two he may decide it isn't worth it. As for me, I won't be voting for him again. His telephone number is: (404) 656-1776. Guess he thinks the last four digits makes him some kind of patriot.
Msgoff January 29, 2013 at 09:15 PM
After reading your comment this thought came to me: In politics it's the same old ball game, but with a different quarterback. Do you understand what I mean? And every quarterback is going to be or do better than the previous one. This BUSINESS of politics is out-of-control.
Charlie Russell January 29, 2013 at 10:03 PM
Dear Msgoff, I couldn't agree more.
Jim S February 08, 2013 at 02:54 AM
Meet the new boss, same as the old boss.....
Charlie Russell February 08, 2013 at 04:13 AM
Thanks for all of the response. If anyone has any ideas, please let me know. I'll be happy to try anything.


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