Credit Card Fee Update: States Striking Back?

Update on Credit Card Fee Settlement and Merchant Response

We’ve been striving to update you on the fallout from last autumn’s credit card fee settlement from the lawsuit where numerous merchants challenged Visa, Master Charge, et all, about the fees they were charging for credit card transactions.

New Checkout Fee Regulations for Merchants

One part of that fallout is that merchants are allowed to pass along a credit card “Checkout” fee to customers, but such fees have to be clearly stated in signage on the storefront (or, one presumes on the landing page of your website), and again as a separate charge clearly visible on the customer’s receipt.

 

Legislative Responses to Checkout Fees

But comes news as we write this that the New Jersey state legislature is considering a law that would make passing along such fees illegal. Again.  They would join 10 other states where such fees cannot be passed to consumers: California and New York are already among them.

Retailer’s Dilemma on Imposing Additional Fees

But even in the 40ish states where such fees are allowed, many retailers are reluctant to add fees that may discourage customer card usage, and large chains like Target and Wal-Mart have already said they won’t be passing along fees to their customers, either.

Constraints for Multistate Retailers

But then again, maybe they can’t, due to the large scale of their chains: under the agreement, a multistate retailer with stores in any of the 10 states where the surcharge is illegal can’t impose it in states where it is.

Small Businesses and the Checkout Fee Challenge

Small business owners who already have a “minimum” credit card purchase to deal with fees are similarly reluctant to pass along additional fees which they fear could inconvenience customers.  In a story from the AP, one bakery owner in Vermont said, of the new fees,  “It’s just not going to happen. It’s hard enough to get them to accept the $5 minimum.”

The Consumer Perspective on Credit Card Fees

Gauging Customer Attitudes

Consumers’ reaction to additional checkout fees is a significant consideration. This section would discuss customer sentiment and the balance between transparency and maintaining customer loyalty.

Strategic Alternatives for Merchants

Discuss the strategies merchants can adopt instead of passing fees to customers, like offering discounts or loyalty rewards to offset the additional costs.

Embracing Technology for Compliance

Examine technological tools that help manage and apply checkout fees accurately, ensuring merchants stay within legal guidelines.

Looking Ahead: The Future of Checkout Fees

Trends and Industry Forecasts

Offer a forward-looking analysis of credit card fees, contemplating potential future regulatory changes and consumer behavior trends.

Staying Ahead of the Curve

Emphasize the importance of staying informed on legal changes and offer resources for merchants to keep abreast of the latest developments.

AVP Solutions: Your Ally in Managing New Fees

Detail how AVP Solutions can aid businesses in dealing with new checkout fees, providing customized payment solutions and expert advice.

AVP Solutions’ Commitment to Free Advice

As ever, the good advice is always free!