Swipe Fees for Using Plastic

Every time you use your credit card a retailer pays up to 3% of your total purchase to the credit card company.  It’s called a “swipe fee,” and now retailers are getting ready to pass this cost on to you, in the form of a surcharge.  Why?  It’s all because Visa-MasterCard and several major banks settled a long running lawsuit alleging they conspired to fix “swipe fees.”  As part of the settlement, retailers are now allowed to charge customers a surcharge if they pay with plastic.  What does this mean for you?  Well, if you make purchases on your credit card, say $1,200/month, or $14,400/year, those purchases will now cost you an additional $432 per year.  What next, you maybe asking?  Paying sales tax on all your internet purchases.  It is definitely coming to a computer close to you!