Credit Card Checkout Fees start in New Jersey. Coming to a place near you soon?

It looks like, as a result of some court decision, New Jersey businesses will soon begin charging customers who use a credit card an additional 4% on their purchases. Like they weren't already getting screwed on the back end by the usurious rates the banks charge them on those cards.

Credit Card Checkout Fees Begin In New Jersey

Using a credit card could be costly in New Jersey starting Sunday, as retailers gain the right to add a checkout fee of 4 percent for credit purchases.

As CBS 2’s Alice Gainer reported, the purpose from the merchants’ perspective is to offset the 3 percent swipe fee that the credit card companies charge retailers.

Financial expert Kelli Grant said those businesses hit hard by the 3 percent fee will most likely pass it on to the consumer, “to actually discourage people from paying credit when they think ideally you should be paying cash.”

The fee applies only to credit cards, not debit or prepaid cards. Retailers must disclose surcharge fees on every receipt – both in-store and online – and they can offer a discount for cash and check purchases.

The change in surcharges is the result of a settlement following a 2005 lawsuit between a group of retailers and MasterCard, Visa and other financial institutions.

The checkout fee is no longer banned in 40 states, but it is still illegal in New York and Connecticut.

CBS New York

I wonder what makes New York and Connecticut so special that they aren't included on this new ruling?

Me, I think this could end up being a good thing. Maybe its the straw that breaks the camel's back and finally gets people to give up their high interest credit cards and start living within their means.

It also points out how the credit card companies screw everybody with their nickel and dime tactics to squeeze every last dime out of consumers. They create money from nothing (other than the card holder's promise to repay the debt) and then charge exorbitant interest for this money it cost them nothing to make and then hit the retailers with a surcharge on top of it.

I'm glad the state is allowing the retailers to be out in the open about what the surcharge is for. If it weren't for this, they would probably have to jack up their prices on EVERYBODY and make even the non-credit card holders suffer.

Credit card holders are screaming about this new added surcharge and they should be; it only serves to illustrate how much the banks are screwing everybody over with their greedy policies. Hopefully it will be enough to wake them up enough to retaliate against the banksters and not the poor retailers who are only trying to stay afloat.

reply to post by FortAnthem


I can certainly understand them wanting to do that.
Most retailers lose that 4% on every purchase. Because of the surcharge that some credit card companies charge.
And usually some processors don't pay up right away.

And then you have charge backs and whatnot.
Sometimes taking a card is a losing experience. Especially with Amex if the costumer complains.

So don't complain about the stores charging the extra fee. Complain about the processors being a hassle to deal with.

I have a debit card for online purchases but in mostly all other areas of life I use cash so I wouldn't really care if such charges appeared in the UK.
If people want to use such cards for borrowing their money then good luck to them, but if the stores or banks want to charge X or Y for the service then I say tough luck, you can choose to use cash instead.

Last year the payment system went down in a supermarket I was at, it was funny listening to all the moaning and complaining when I was one of the handful of people with cash who managed to make my purchase - I was more than happy as the line of people I was behind suddenly evaporated

Gas stations where I live do this. You pay more per gallon if you're using a credit card instead of cash.

reply to post by grainofsand


The new fee doesn't affect users of debt cards or pre-paid cards. Only folks screwing themselves over with credit cards.

I really hope this helps to open people's eyes to how badly they get done over by the credit card companies and the banksters. Unfortunately, it seems the article was written to inspire a revolt against any retailer who decides to add this extra charge.

People need to realize that the retailer's profit margin is very slim and little fees like this can easily put them out of business. It is the bankster's greed that has prompted this extra charge and people should focus their anger at their credit card companies, not the retailers.

This just proves that the banks and credit card companies are robbing everyone. From the lowly customer using their Debit card to the corporations selling products. The Banks and card companies are making cash from both....and yet some folks will say it's a good thing.

How about this for a thought...

How about we go back to using cash. We choose not to buy what we do not need and only use the credit card and finance for emergencies and major purchases (homes, cars, appliances). This is the only way to "break the bank" so to speak. They know USA citizens are the most impatient children on the planet "I'll gladly pay you Wednesday for a hamburger today"...remember that?

We need to grow up as a country and as a society. The only debt I have right now is my car payment and my daughter's college. I just moved to the area so I rent a house out in the boonies....I refuse to add debt for the sake of living in the moment. If I want something, I save my money to buy it. There is very little that I 'have to have" that cannot wait till I have the money saved for it.

We have been duped...the marketing ploys have been perfection in motion....they make you think that you "must have" this or that "right now" and you sink yourself into debt (with interest) to buy it...anyone that financed a tablet or a smart phone...well...you're an idiot...you did not "need" that.

The banks will take advantage of people's knee jerk reactions and the false "need" to buy now....they will charge you interest to loan you the money on your credit card and then the turn around and charge the vendor to process the transaction...what a perfect storm of corruption and usery.

Let's not forget...usery is a sin...these folks will one day get what is coming to them. I personally think our purpose on this planet is to grow and learn....those that take advantage of the naive should be tied to a stake and burned....

Credit cards should only be used as a last resort anyways. Use a Debit card for purchases.

How much more can Credit card companies screw holders over before holders say ENOUGH?

Instead of just offsetting the cost the establishments are profiting as well.. They charge a 3 percent swipe on the back end, so they decide to charge a 4% on to the customer. Why the extra one percent then? They are just as greedy.

I am in New Jersey and that pi$$ me off. I hope one day I have the chance to buy a house with cash, pretty sure they will come up with something else.

I think I should point out that this court decision has foisted these fees on, not just New Jersey, but a total of 40 states who had previously outlawed this practice. Just goes to show who owns the courts right?

This new fee in Jersey is only the beginning. You can probably expect to see this fee popping up more and more in the other states affected. Like I said; I think this is a good thing and will discourage people from using their credit cards except in emergencies from now on.

The banksters may have thought they won the battle when they had that court decision foisted on those forty states but, its after-effects may just cost them more in the end when people start using their cards less.

I just hope that retailers have the balls to use this fee against credit card holders and fight back against the media propaganda that's painting them as the bad guys on this issue.

I can't believe it has taken this long for this to happen. We all pay to cover the charges of those who use credit cards instead of cash, as merchants have built those charges into prices for a long time. But then again the merchants probably won't lower prices either as a result. So everyone still pays more and credit card users pay even more. Even what appears to help us hurts us in the end. I really can't wait until it all implodes. Just wish I was younger to more fully enjoy the benefits of a new paradigm.

This is absurd.

Why not just remove the ability for credit card companies to charge a fee of a % on every purchase while they at the very same time are charging fees for those borrowing the debt in the first place?

They are doubling up on each sale, now the retailers get to tag on even more fees?

Way to destroy the economy one bit a time.
This will harm the flow of commerce, and you know it.

Originally posted by MrStyx
Instead of just offsetting the cost the establishments are profiting as well.. They charge a 3 percent swipe on the back end, so they decide to charge a 4% on to the customer. Why the extra one percent then? They are just as greedy.

I'm no supporter of banks but they can charge whatever they like, thats just business. No-one is forced to use a credit card, I don't.

Originally posted by sligtlyskeptical
I can't believe it has taken this long for this to happen. We all pay to cover the charges of those who use credit cards instead of cash, as merchants have built those charges into prices for a long time. But then again the merchants probably won't lower prices either as a result. So everyone still pays more and credit card users pay even more. Even what appears to help us hurts us in the end. I really can't wait until it all implodes. Just wish I was younger to more fully enjoy the benefits of a new paradigm.

Using cash = very few fees (currently, hah).

Using credit = fees fees and more fees.

So in the long run, a person using cash has anywhere from 6 to 50% more wealth value in the amount of products they can purchase over a long period duration.

And why are we using credit cards again? Simplicity? Seems pretty complicated to me.
Convenience? Losing a ton of $$ for nothing seems really inconvenient to me.

reply to post by MrStyx


I think grey580 explained it pretty well:

Originally posted by grey580
reply to post by FortAnthem

 

I can certainly understand them wanting to do that.
Most retailers lose that 4% on every purchase. Because of the surcharge that some credit card companies charge.
And usually some processors don't pay up right away.

And then you have charge backs and whatnot.
Sometimes taking a card is a losing experience. Especially with Amex if the costumer complains.

So don't complain about the stores charging the extra fee. Complain about the processors being a hassle to deal with.

It not only covers the 3% fee but also the other losses they can incur from dealing with the banksers.

Originally posted by grainofsand

Originally posted by MrStyx
Instead of just offsetting the cost the establishments are profiting as well.. They charge a 3 percent swipe on the back end, so they decide to charge a 4% on to the customer. Why the extra one percent then? They are just as greedy.

I'm no supporter of banks but they can charge whatever they like, thats just business. No-one is forced to use a credit card, I don't.

I am confused.

So credit card companies can charge whatever they like...

But retailers have to get laws passed to allow them to charge whatever they like?
And need really good arguments just to get a few steps forward with the proposals?

Why does one group have more leverage in matters of legislation?

Originally posted by muzzleflash

Why does one group have more leverage in matters of legislation?

"Give me control of a nation's money
and I care not who makes the laws."

Mayer Amschel Rothschild

Liberty Tree

Originally posted by FortAnthem

Originally posted by muzzleflash

Why does one group have more leverage in matters of legislation?

"Give me control of a nation's money
and I care not who makes the laws."

Mayer Amschel Rothschild

Liberty Tree

You can say that again...

And again...

Times infinity.

I have a merchant account that processes around 70k a year in CC fees. In all of my agreements I am specifically NOT allowed to charge any additional fees to a credit card user or I face losing my ability to process. This system, I have to assume was setup by the bank. Personally I wish I did not have to take or use credit cards at all. Sadly business owners have little to no choice in my reservation based industry. (No not a damn hotel)

Has something changed in California?

Originally posted by muzzleflash

Originally posted by grainofsand

Originally posted by MrStyx
Instead of just offsetting the cost the establishments are profiting as well.. They charge a 3 percent swipe on the back end, so they decide to charge a 4% on to the customer. Why the extra one percent then? They are just as greedy.

I'm no supporter of banks but they can charge whatever they like, thats just business. No-one is forced to use a credit card, I don't.

I am confused.

So credit card companies can charge whatever they like...

But retailers have to get laws passed to allow them to charge whatever they like?
And need really good arguments just to get a few steps forward with the proposals?

Why does one group have more leverage in matters of legislation?

edit on 28-1-2013 by muzzleflash because: (no reason given)

I can't comment on the retailer 'forced charges' situation but I'm a self-employed builder and I'll squeeze whatever I can from anyone willing to pay for my services. I'm up front with it and a customer can choose to accept my quote or not. I see no difference with any other business.
Anyone whining about credit card charges can always choose to use cash instead.
I do not accept cards for payment and pay little banking charges...my choice, as others chose their own path.