What's New At Mid American
Merchants in 40 states can pass on credit card swipe fees
Merchants in 40 states now have the option to pass on the swiping surcharge for certain VISA and MasterCard credit card point-of-sale transactions to consumers.
The surcharges won’t be allowed on debit and prepaid card transactions and in 10 states, including Kansas, that prohibit the surcharges. The other states where the surcharge won’t be allowed are California, Colorado, Connecticut, Florida, Main, Massachusetts, New York, Oklahoma and Texas.
According to financial experts, any credit card surcharges will be limited to the amount of money the merchant pays to the credit card company. So if a merchant is charged 50 cents per swipe by the credit card company, it can only pass on a 50 cent charge to the consumer. Retailers who add the surcharge must post a fee disclosure to the consumer at the point of entry, point of sale and on the receipt, according to experts.
The option became effective Jan. 27, 2013, and is the result of a lawsuit settlement between merchants and VISA and MasterCard.