Wouldn’t you love to be charged more for using your credit card? I didn’t think so, but that is exactly what may begin to happen. Many people are unaware of a recent settlement between credit card companies and merchants that gives merchants and retailers the option to pass on credit processing costs to customers. It is common knowledge that merchants pay processing fees (a percentage of the total purchase) to credit card companies. Consumers have never had to worry about these fees because the cost was already built into the price of the product. Now with the new agreement these costs can be passed to the consumer by way of a 1.5%-4% transaction charge.

To most consumers this appears to be a ridiculous and unnecessary agreement designed to punish consumers. However, many analysts see this as a good thing for consumer. They say this may lower prices or retailers may give discounts for paying in cash. A number of large retailers, including Walmart and JCPenny, have already said they will not choose to pass these charges on and will continue to keep prices low for consumers. The most likely place you will see these charges implemented is in small Mom-and-Pop shops and other small specialty retailers. These retailers do not normally generate the revenues necessary to pay the processing fees and implement credit card equipment. Any retailer that chooses to implement these charges will have to disclose this information prior to taking payment on a credit card.

Will this become a nationwide epidemic costing consumers millions of dollars a year? Most likely not, but shop smart and always be aware of what you are paying for. Your money is valuable, precious, and most importantly it’s yours. Know where it is going and why.