Shoppers who pay with plastic may notice an extra fee on their receipt. A new policy, which went into effect on Sunday, gives merchants the option to charge consumers up to 4 percent when they use a credit card, CNN Money reports. The new fee does not apply to those using a debit card or prepaid cards.
The new rule is part of a controversial $7.25 billion settlement that won federal approval in November between credit card issuers and millions of merchants. American Express Co. was not part of the deal.
Ten states also still prohibit the new surcharge, including California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas, MSN.com reports. Minnesota is not one of them.
However, Bloomberg reports Minneapolis-based Target Corp. is among some major retailers who have no plans to charge extra fees for purchases made with Visa or Mastercard. Macy's, Sears and Wal-Mart are also holding off on the new surcharges.
Target issued the following statement last July:
“Target believes the proposed interchange fee settlement is bad for both retailers and consumers. The proposed settlement would perpetuate a broken system, restrict retailers from any future legal action, and offer no long-term relief for retailers or consumers. In addition, Target has no interest in surcharging guests who use credit and debit cards in order to allow Visa and MasterCard to continue charging unfair fees. We will continue to explore our options while working toward a solution that represents true reform.”