Credit Card surcharge coming to NJ?

[TheWombat 67]

I was in Stop & Shop today and the checkout lady mentioned that she heard on the news this morning that the NJ laws have changed and that retailers are allowed to charge shoppers who pay with a credit card up to an additional 4% premium on their total bill.

 

http://pix11.com/201.../#axzz2JCKDGO1z

 

http://www.onenewspa...es%E2%80%99.htm

 

http://usa.visa.com/...fees/index.html

 

A quick Google found that this is indeed true.

 

Seems a backwards step to me and one that will likely have a negative impact on the economy.

 

So, while I've not heard of any retailers implementing this just yet, I assume it is only a matter of time.

 

TheWombat

[BlueLineFish 615]

yup.. started today. Only jersey does it right now that i know of. Definitely not NY or CT

[AnthonyC83 0]

This is gonna suck. I guess I need to start using cash.

 

I wonder if they offer a discount for cash now? ...yeah right lol

[Sigman 41]

According to the last link, it looks like a law that affects the entire US. It's just that certain states have laws protecting against this. Did NJ actually change it's law to allow this? If so, shame on NJ.

[Arbelest 29]

Well time to use the debit card or cash from now on.. All those cash back incentives from credit card companies dont appear to be worth it anymore.

[TheWombat 67]

It will be interesting to see which retailers enact the surcharge. I'd be surprised if all of them do as I could see shopper backlash. Time will tell.

 

Extract from the last link in my original post:

 

"What This Means for Consumers

• Consumers will pay an additional fee when they use their credit card at retailers that decide to surcharge.
  
• Consumers should be aware there are limits to the amount merchants can surcharge. *
  
• Retailers are permitted to apply a surcharge to only credit card purchases and cannot impose a surcharge for purchases made using a debit or prepaid card.
  
• If retailers intend to impose a surcharge on credit card purchases, they are required to notify customers before customers make an actual purchase at the store entrance and at the point of sale – or in an online environment, on the first page that references credit card brands.
  
• Retailers must disclose surcharge fees on every receipt – both in store and online. Carefully review receipts where checkout fees should appear.
  

 

Retailers Can Offer a Discount for Cash and Check Purchases

• Retailers can encourage their customers to use other forms of payment, such as cash and checks, and can discount for PIN debit and cash and checks.
  

 

Surcharging isn’t allowed everywhere. Currently, there are laws limiting surcharging in: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas. Consumers who are subjected to a surcharge or checkout fees in states where they may be prohibited from surcharging may want to report the retailer to their state attorney general’s office."

 

TheWombat

[GRIZ 3,369]

Gas stations started doing this in the 70s.

[intercooler 41]

they already do that at gas stations...

I just don't buy gas at those places, nor will i purchase anything anywhere they will do this

[JackDaWack 2,895]

yup.. started today. Only jersey does it right now that i know of. Definitely not NY or CT

 

don't forget gunbroker!

[JackDaWack 2,895]

they already do that at gas stations...

I just don't buy gas at those places, nor will i purchase anything anywhere they will do this

 

They either charge extra for credit OR they charge a little extra for both(same price). Places that have one price regardless seem to be a little higher then the cash price of places that charge extra for credit. At least around here.

 

 

Gas can be a little different though, i just find the cheapest place along my commute.

[M4BGRINGO 139]

Could get interesting. If I take stuff to a checkout and see that I will be surcharged for using a credit card I will give them two options, either drop the surcharge, or put the stuff back on the shelf! I see the retailers brought this class action lawsuit against the credit card companies, they didn't like the fact that they were paying 2 - 4 % to the CC companies for the "priviledge" of using their services and were not allowed to pass it on to the consumers. Now that they will be allowed to pass the charge along, the CC companies may start seeing a decline in use, which would be a good thing for most people anyway.

[DirtyDigz 1,812]

I see this as an entirely good thing. CC surcharges were previously a hidden cost that retailers had to eat and I suspect the banks and card issuers acted as a cartel to keep the fees high. Was the service that they offered worth effectively a 2-3% tax on nearly every sale in the US?

 

I wish I could have been a fly on the wall when Visa's lobbyists and lawyers were fighting this...

[voyager9 3,441]

It's interesting that they don't include debit cards.. I know even my debit card can be used as a CC and has the Visa logo on it. So the same card, used two different ways, results in a 4% difference.

 

I do think this is going to have a lot of backlash, which as others have mentioned was probably its exact purpose. Try to get the fees exacted by the CC Companies out in the open and push some pressure back on them.

[Candide 0]

Odd how quietly this stuff gets pushed in under the radar.

 

Govt for the people, by the people. I'd bet my paycheck that law wouldnt make it thru a popular vote.

[Nikos 31]

Consumers want their awesome sales along with bonus miles & rewards, but that becomes a conflict for the merchant when the CC processing fees continually increase.

 

I believe it's better to have the option to save a few more bucks rather than have the final price increased across the board.

[Candide 0]

I use my cc for online purchases so I have consumer protection if something happens to my order. This sucks.

[quikz 34]

This SUX.

[M1152 713]

I knew gas stations have been doing it for years however I avoid those stations unless I’m on the road and I don’t have a choice. Thanks for the heads up.

 

In my view it’s just another back-door tax allowed by our lawmakers and in all honestly I am not surprised. As far as the post(s) above them seem to be onboard with this that cost it is built-in and everyone knows it. With all due respect to you think you your day-to-day items are now going to be at a reduced cost? Think again, that’s not happening unless you had cost slashed across the board heading into this.

 

Cash is king and always has been. The beauty of the CC is a dispute with a vendor you had some protection especially if it was long distance purchase. Now you have decide if that extra cost is worth it to you. For a trip to the gas station probably not but for a major appliance buy maybe so. Either way if you guys starting paying in cash make sure you get your receipts even if they have the vendor hand-write them.

[BlueLineFish 615]

I won't use a place that charges for cc use...except for gunbroker. I look at that as a convenience fee for not having to deal with the post office

[NicePants 58]

Man, it's like they really don't want people to stay in this state.

[M4BGRINGO 139]

I use my cc for online purchases so I have consumer protection if something happens to my order. This sucks.

Not sure if the charges will be passed on to the users in that case. There are states that still don't allow the charges to be passed-on. Retailers don't have to charge us for using credit cards, but they will be allowed to now (in New Jersey) if they decide to.

[Smokin .50 1,907]

As a small business owner, I became part of the class-action law suit against Visa and MC. I didn't have a choice in the matter! The cost of goods has always reflected the total cost of doing business, including being forced to accept cc's and paying sometimes more than 4.5% on a phone transaction where I can't physically swipe the card through a card "reader". At the end of the month, this isn't pocket change, and it means I have to keep prices high enough to pay these outrageous fees, cover all of the rest of my overhead, insurances, payroll, etc., etc. and still be taxed yet again on the profits as well as my salary. I can't believe that there are people walking around that think that they're not actually paying for the privilege of using their credit cards, earning travel miles, etc., ON MY BACK! They must be stupid or something??

 

The car repair facility I use offers a 5% incentive discount to pay with cash. If you want to pay by CC, just pay the bill, because it doesn't change. BUT, if you want to SAVE MONEY, go to the bank and withdraw some green dead presidents and enjoy the discount. This is the way most small businessmen will handle the issue.

 

And to all here that scream, "I won't pay a surcharge"---you're all Schmucks if you think that you don't already, lol!

 

Walk a mile in my shoes before you tell me how to run my business, PLEASE!

[illy 1]

Re: gas stations & CCs. We get our gas at Costco, which is not only the cheapest around here (Edison), but also takes no cash (only CC and debit).

[dbldune 8]

Interesting.. I heard that this does not apple to American Express and this is not a "credit card". Ironically Ax charges the most of any of the CC companies

[raz-0 1,259]

Interesting.. I heard that this does not apple to American Express and this is not a "credit card". Ironically Ax charges the most of any of the CC companies

 

 

Some Amex are charge cards, like the green card. Some are credit cards like the blue card.

 

 

[tony357 386]

I got rid of my card machine 2 years ago fees went through the roof, so i did not have a card machine for a year and a half worked ok with out it.

this year i picked up the square paid 2.75% no monthly fees. Their is a charge for not swiping but the square worked good for me on the road and 98% of my customers pay by check in the mail which i want to change had a few who did not pay for services lat year. now i am going to ask for a credit card before work is performed to secure payment but still give the option to pay by check we will just hold the card # for 30 days if payment is not rendered the card will be charged.

[PK90 3,573]

I see a catch22 here.

 

If the retailer advertises two prices for CC and cash, he risks losing a sale from the CC user, as they feel they are getting the shaft. If the retailer has one price, the consumer assumes that they are entitled to a better cash price.

[tony357 386]

I see a catch22 here.

 

If the retailer advertises two prices for CC and cash, he risks losing a sale from the CC user, as they feel they are getting the shaft. If the retailer has one price, the consumer assumes that they are entitled to a better cash price.

 

YEP..

[TooBigToFit 2]

It used to be that the fee was a "you scratch my back, I'll scratch yours" kinda thing between CC companies and businesses. Credit cards gave consumers more spending power, and thus they would be more capable and likely to buy stuff from retailers. As a return for the potential increase in business, CC companies would in turn, make it a requirement in their contract that businesses would not charge more for credit card usage to cover for fees. CC companies need the fees to cover costs, and to be profitable, and they wanted to make consumers think that their CCs were as good as cash, and to encourage consumers to use CCs as much as possible.

 

CC companies got a nice steady flow of interest paying customers and fee paying businesses, businesses had ways to accept more customers = more business = more money, and customers had a way to pay for things when they forgot the cash at home, or when the pay check was coming in a week, but they needed something today, or on big ticket items.

 

But the businesses realized that without them, the CC companies would be screwed. They were tired of taking the hit for fees, so now, they've banded together and defeated the "cash and CC prices are equal" clause in their contracts. But will it really help out the businesses? If they charge extra for CC, will the costumer just say "screw it, I won't pay extra for the fees, and I don't have the cash," such that instead of getting $X amount minus 3% or so, they'll get $0 because they just don't want to buy it for more money or with cash? Who knows?

 

I understand that prices before this were adjusted accordingly to compensate for fees. But I find it doubtful that retailers are going to lower base prices in lieu of being able to charge extra for CC processing fees. I also think it will hurt the consumer, because adding on that fee will be another math calculation to figure out, another thing that, in addition to tax, makes the actual price way further from the sticker price. It's hard enough for me to figure out whether the higher gas price listed on the billboard is for credit card, or for premium (damn turbo). And to add, let's face it. Some people suck at math. Imagine all the people that will complain about being charged the wrong amount.

[Smokin .50 1,907]

I see a catch22 here.

 

If the retailer advertises two prices for CC and cash, he risks losing a sale from the CC user, as they feel they are getting the shaft. If the retailer has one price, the consumer assumes that they are entitled to a better cash price.

 

You are correct in your assumption, therefore you can either sell your Widgets at a slightly higher price to compensate for the credit card merchant fees AND/OR you can offer a cash discount up front like my auto repair shop. Sometimes it's all in how you say something, since my car guy hasn't lost any business doing things this way........