By Clay LePard
clepard@cbs4qc.com
Shoppers beware; starting today you could see your bill a little bit bigger if you use a credit card.
Because of a class action settlement between major retailers and credit card companies, businesses can now charge you a small fee if you use a credit card instead of cash.
Currently, businesses must pay a small processing fee every time a customer pays with a credit card.
"They get a bill and get money subtracted from what they're getting from Visa and MasterCard every month," says Marty Kurtz, President and CEO of The Planning Center in Moline.
"If your business is percentage wise 70% credit card, 30% cash and credit card heavy like most businesses are - it adds up," says Mark Klundt, Co-Owner, The Boat House in Davenport.
While the charge is only 1-3% of the total sale, businesses now have the option to pass on that fee to customers.
Checkout fees are illegal and already banned in California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas.
Here in the Quad Cities, locals we spoke with say the new fee could be a game-changer.
"I'm going to use an ATM more," says Corey Clark. "I'm going to get cash more or just buy things with cash."
Financial advisor Marty Kurtz says shoppers need to keep an eye out on their wallet.
"People should be asking retailers ‘how does this work? Is there a way I can buy this cheaper if I do use cash or write a check,'" says Kurtz. "It's going to be a new world out there."
According to the settlement, businesses imposing a credit card surcharge fee must disclose it to the customer, either with signs in the business or on your receipt.
Also, the surcharge does not apply to debit cards - only credit cards.
