New Proposal Could Block Extra Credit Card Fee

A proposal before the state legislature could keep shoppers from having to pay more when using credit cards. Chris Slaby reports.

The plan would prohibit Illinois retailers from adding an extra fee to purchases made with credit cards.

It comes after a federal settlement gave businesses the go-ahead to charge up to four-percent extra on credit card transactions, unless states prohibit them from doing so.

So far, ten states have banned the surcharge.

Representative Barbara Wheeler, a Republican from Crystal Lake, hopes to make Illinois number 11.

WHEELER: “To turn around and have a surcharge for using the convenient credit card, I would feel betrayed.”

David Vite is president of the Illinois Retail Merchants Association.
He says Illinois consumers have nothing to worry about, because Illinois stores will not implement the surcharge.

VITE: “Their interest is in lowering prices to their customer, not increasing costs to the customer.”

Consumer groups, though, say they’re concerned retailers will wait for things to cool down before implementing the fees.

The concern from all sides may be for naught, as the settlement allowing stores to charge the fees is only preliminary.

It could take until sometime next year for it to be finalized.

Chris Slaby

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2 Responses to New Proposal Could Block Extra Credit Card Fee

  1. Pingback: Give Credit» Blog Archive » Credit Card News : NJ retailers could charge more for credit-card transactions, but many won’t – MyCentralJersey.com » Give Credit

  2. Pingback: Give Credit» Blog Archive » Credit Card News : This Week In Credit Card News–A Weakened CFPB, Retailers Avoiding Card … – Forbes » Give Credit

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