Consumers to pay credit card surcharge, not merchants

WEST SPRINGFIELD, Mass. (WWLP) - Right now, if a customer is charged extra for using their Visa or MasterCard credit or debit cards, they could report that business for violating a policy, but some merchants and trade groups want to change that.

They want the right to charge extra if customers pay with plastic, rather than cash.

Each time a customer pays with Visa or MasterCard, merchants have to pay transaction fees, and it is illegal for any businesses to impose a surcharge.

This swipe fee policy could change because big merchants like Kroger and Safeway have filed lawsuits against Visa and MasterCard. In fact, there have been more than 50 lawsuits since 2005.

Analysts said, these merchants prefer complete flexibility on how they accept payments.

Some people told 22News, if the swipe policy changes, they'll also change their spending habits.

Troy Scammon of Springfield said, “I think it would definitely change my habit. I would make sure I have a little more cash on than usual and just be well prepared.”

But the fee may not stop everyone from using credit cards.

Diana Varypatakis of Chicopee told 22News, she uses credit cards for their points and rewards programs.

“If I save some money by paying cash, I will use cash. If I save somehow... points or whatever they offer you from charge card, I'll use my charge card,” she said.

Lisa Riley at Country Trading Post in Chicopee told 22News, most of her customers use credit or debit cards to make purchase.

And she said, even if the policy changed, Country Trading Post would continue to see regulars and people who live nearby.

She said, “They are regulars. They are within walking distance. It’s the convenience of not having to go to big stores and deal with all the extra added customers in lines and everything. I don't think it would matter.”

A settlement could be reached by September.

American Express and Discover allow surcharges, but they don’t allow businesses to charge the fee unless they are charging other credit card companies.