Credit Card Transaction Surcharges: Now Legal

Many merchants are unhappy with the fees they pay to accept credit cards from their customers, despite the fact that this is one of the many costs of doing business. Now business owners who feel they pay too much in processing fees in 40 states can rejoice: they are now legally allowed to tack on up to 4% extra when customers pay with a credit card (debit cards are exempt from this charge).

The new fee is called a "checkout fee" and is illegal in Californial, New York, Texas, Maine, Colorado, Florida, Kansas, Massachusetts, and Oklahoma. Many large corporations like Wal-Mart, McDonald's, and Macy's have already stated that they will not be imposing the checkout fee on their customers.

I really only see this happening with small, independent businesses as they have been the most vocal about payment processing fees. Some of them opt to go cash-only but they know that many of their customers prefer to use some type of plastic and could potentially lose the business altogether. I don't see how not accepting credit cards for your business is even an option in this day and age. Yes, there are merchant processing fees associated with taking credit card payments but there is also a cost associated with handling cash.

MasterCard has set up at website at www.CheckOutFacts.com to inform people of the new checkout fee.