(FOX 25 / MyFoxBoston.com) – Starting Sunday, businesses that accept MasterCard and Visa will be able to tack a surcharge onto credit card purchases.
The surcharge is the result of a class-action settlement reached last July between merchants on the one hand, and banks and credit card companies on the other, the New York Daily News reports.
Visa, MasterCard, and several banks and credit card institutions paid retailers over $6 billion and agreed to allow merchants to charge an extra credit card fee starting Jan. 27.
According to the settlement, the surcharge, which is supposed to be equal to the cost of processing a credit card transaction, can't be more than 4 percent.
According to the newspaper, credit card surcharges are illegal in 10 states: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas.
Businesses that wish to tack on the surcharge must post a sign announcing the extra fee, as well as disclose the fee at the checkout counter and on the receipt, reports the Electronic Payments Coalition.
For more information: New York Daily News