Greetings, shoppers! Have you ever been at the point of sale with your card, observing that unexpected 'surcharge' fee? No need to worry, many individuals are puzzled by these charges. Let's figure this out what credit card surcharges entail and how they impact your finances.
1. Why Do Stores Charge Surcharges?
2. How Common Are These Surcharges?
3. How Do Surcharges Affect Your Money?
4. How to Avoid Paying Those Extra Fees
5. What's the Future of These Surcharges?
1. Why Do Stores Charge Surcharges?
Ever think about why a store might add a surcharge to your credit card bill? It revolves around the charges that stores incur for processing credit card transactions. Credit card issuers take a portion of each purchase made using their cards. These charges can be quite substantial, therefore, stores sometimes pass them along to customers in the form of a surcharge.
2. How Common Are These Surcharges?
Interestingly, such fees are not as widespread as one might assume. As reported by a 2021 study from the Federal Reserve, only about 2.
5% of all merchants in the United States charge customers a surcharge. But when visiting a large store or a dining establishment, you're more prone to encounter this fee.
3. How Do Surcharges Affect Your Money?
Thus, what is the actual cost of these surcharges? Well, this varies based on the amount you are purchasing and the surcharge rate. For example, if you make a $100 purchase with a 3% surcharge, you will incur an additional $3. While it may not appear significant, it can accumulate over time if you frequently use your card.
4. How to Avoid Paying Those Extra Fees
However, fear not, there are methods to prevent paying these additional charges. Initially, try using a debit card or in the place of money of a credit card.
Many locations never incur for debit cards or cash. Or, you can find outlets that they never incur any fees.
5. What's the Future of These Surcharges?
With innovative payment methods like ApplePay and GooglePay, it might get diminished in frequency. These digital payments usually present reduced costs to merchants, which might mean reduced incidence of additional fees. But we'll just have to hold patience and observe.