How to avoid credit card surcharges

KALAMAZOO, Mich. (WOOD) - Recently a ban was lifted on merchants choosing to assess a surcharge (1.5-4% of purchase amount) when consumers choose to make purchases with a credit card. This type of fee is not placed by financial institutions such as a bank or credit union, but rather the merchant who is attempting to pass on fees assessed to them when processing payments made via credit cards.

Most retailers are indicating no likelihood to implement a surcharge, but if a merchant chooses to implement one they must do the following:

• Post a warning sign at or near the store entrance indicating they have a "checkout fee.".
• Itemize the fee on the transaction receipt.
• Not discriminate card types to charge the fee (Fee a Visa card, but waive a Discover card).
• Remember that debit card purchases do not fall into this category of potential surcharge.

For more information on credit card surcharges visit Community Federal Credit Union online at www.1stcomm.org or call 269-382-9866.