Ask Terry Questions credit debit cards’

credit debit cards’

By Terry Savage on July 05, 2024 | Credit/Debt

These days you cannot go to Soldier Field, United Center or Navy Pier without a credit card.
Recently I have gone to an I Pad repair service, spa/salon, expensive steak house and cheap mexican take out and all have signs stating they are charging a fee to use my debit or credit card. I heard this was illegal. What’s the truth?

Terry Says

Actually, it’s not illegal in most states to charge a fee for use of a credit — or debit — card, IF the amount of the fee is fully disclosed in advance.  Retailers pay costly interchange fees for processing credit card charges. And almost all retailers now pass them on to customers.  Debit card processing costs a much smaller charge for the retailer, since there is no risk — the authorization means the money is already in the account and reserved.   But some retailers do have extra charges, especially if the purchase is not PIN authorized (which can only be done in person at a retailer).

Here’s the latest info on the rules.  And you can’t get around this by using cash in many places.  I’ve been noticing a lot of establishments that won’t handle cash at all — considering it too dangerous and costly to deal with!



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