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See you may notice a change if you -- -- using your credit card yesterday like an extra charge at the -- -- start.
Instead of stores -- those credit card swipe fees now forty states are allowing net charge to be passed on Q1 time we'll just ten states have laws prohibiting it.
-- as high -- 4% in some places this could have a big impact and where people shop and possibly which businesses stay afloat.
Just needs right now right here to break -- all -- is John Paul.
-- president -- consumer education -- Smart credit dot com.
Thanks so much for joining us it and I just want to make sure I understand this so this is the summer between one and 4% -- that normally when you swipe your credit card.
It is the merchant that has to pay that to the credit card issuer.
For the privilege of using the credit -- a lot of times when -- in -- -- -- -- trying to encourage you to -- cash here in New York.
Are the places because they don't wanna pay that.
This isn't FCC you know let's not try and and -- -- a -- still gonna be charged that one to 4% interchange or swipe fee.
But now in many instances they'll be able to subsidize the cost of that -- I just turning right around and charging the consumer for when it's like with certain credit cards and certain state.
It's now there are rules around this there are ten states where they can not do that.
And I know New York is one of them I'm sure we have a list of the other ones.
What they also have to look -- like magic there is some you're lucky enough to be any yellow stake your safe.
We should still watch -- visit the other states so if -- any other states today after posting.
It absolutely this has to be overt disclosure they can't just a sign up in about -- in the back of the store in Saint Louis is our disclosure.
I'll let you know before you charge and -- this also applies to saturate a very good topic it's it's also applies to online purchases.
I'm in Georgia so on subject to the -- -- have the same protections the folks in New York cap.
I'm ratified a long line to buy something I don't know whether or not I'm gonna be charged -- -- canceled check out.
Because -- a merchant will now anywhere -- and -- what form pay nominees as as far as a credit card debt is that not now.
That -- have to disclose to me that there's a fee and what the amount of the fee is going to be so would show up -- check out.
That's exactly right and an online purchase George shot and the check out process.
And I understand this all comes from that seven point 25 billion dollar settlement.
That the acting with ten banks in the credit card companies made.
That was supposed do you really get in the way everyone in Washington put it forward that they had really struck a blow.
To credit card companies into the big banks anyway and it was going to be great for us consumers but I never heard about this when that settlement was.
It militants are -- as all parties involved in the settlement.
None of them seem to be happy about it every single person you talk to is complaining about best.
-- consumers are complaining to merchants are complaining that the card networks are complaining.
I'm just wondering why in the world they agreed to that's I know the mourners are probably cap because they dot -- -- that you hear it you know this is voluntary first off this is not a feed its mandatory.
So really it is a choice by retailers that they want to children.
-- locked out -- doesn't that's a great point but it really it I mean in a lot of ways.
That it really hurts mom and pop because you could see stores like Wal-Mart or target saying.
We are gonna do this -- shop with us that the mom and pop who is you know maybe closer to the margin.
Does charge it because they feel like they need the money people shop there less I don't know who -- charging -- and.
Such check this out your analog -- National chains it appears that the national chains are not going to be allowed to charge -- -- and here's why.
There are some language in the supplement that says that if you charge the -- -- one state you have to charge it in every state.
And because national chains also do business in the ten states where that he is illegal.
Then they can't -- to -- -- Georgia because they can't charge a fee in California so it looks like the national chain targeting and I'm be allowed its husband's feet.
So it is going to as you said it's going to fall right smack down.
On the shoulders the the mom and pop stores and the local chains.
And most of the folks that frankly we do business with not because of their prices we did this is a -- because we'd like them -- and so they have a choice that they wanna hit us -- an additional one to 4% on the product that were buying.
Looks like they're going to be allowed to -- south.
American Express not part of the settlement as -- -- -- American Express he will be hit with that he that was content.
We're out of time think he's a much for coming on John we appreciate the information good stuff.
Banks must -- so here.
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