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Health & Fitness

BBB's Five Tips to Avoid Merchant Credit Card Surcharges

Extra Fees May Appear on Receipts outside of Connecticut Connecticut Better Business Bureau is urging consumers to be aware that they might have to pay for the right to use a credit card in other states. Connecticut is one of several states that prohibits retailers from adding a credit card fee to consumers’ bills, and many retailers have said publicly they do not intend to charge for credit card transactions. Nonetheless, merchants in most states have the option to automatically pass-on to consumers transaction fees imposed by credit card companies, although by law, they must be identified on receipts. The addition of the fee is called “merchant surcharging.” Consumers may be charged up to four percent of the value of any purchase with a credit card. Merchants have long been charged a processing fee by credit card companies. Until recently, they were prohibited from passing-on those fees to consumers. That changed as a result of litigation. However, sellers may not charge customers fees for transactions by debit or prepaid cards. Aside from Connecticut, states that have banned merchant surcharges include California, Colorado, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas. When travelling in the other states or U.S. Territories or shopping online, BBB offers the following tips: • Use cash for smaller purchases; some retailers may offer you a discount if you pay with cash • Look for notices about merchant surcharges; retailers are required to let you know so you can decide beforehand if you want to pay with a credit card • Use a debit card with “bricks and mortar” establishments you know and trust. • Use a credit card for online purchases when you need the greater protections that credit cards offer • Get into the habit of monitoring your bank account and credit cards accounts online For more information on managing your credit, check out BBB’s “Managing Credit – Made Simple” at http://www.bbb.org/credit-management. -Submitted by Howard Schwartz, Executive Communications Director, Connecticut Better Business Bureau Do you like Connecticut Better Business Bureau posts? If you don't want to miss any of our helpful posts, you can subscribe to our blog by clicking this link and then click "Get email updates," and our posts will arrive in your email.

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