Posted: Jan 28, 2013 7:07 PM by MTN News
BILLINGS-Before pulling out a credit card for your next purchase, you might want to make sure extra fees aren't tacked onto your bill. Merchants here in Montana, along with 39 other states can now charge an extra fee of up to 4 percent when you use your Visa or Mastercard.
This fee comes from a $7.25 billion settlement between merchants and credit card companies. The settlement allows retailers to charge between 1.5 to 4 percent of your total bill.
If a business decides to charge its customers, It must post a sign on its door, at the checkout counter and on receipts. In a state with no sales tax, a majority of merchants including big name stores like Walmart and Target have vowed not to charge the fee.
Experts say from a customer service perspective, paying an extra fee could drive customers away.
"Business owners have been dealing with credit card fees and having to pay this fee ever since they started taking credit cards as payment. So they've built it into their cost of business and when they're deciding what something is going to cost to the consumer, they've really accounted for that," said Tyrel Rosean with Payment Alliance International.
There is a chance we can see changes in the settlement as a final ruling is expected later this year.