Christmas may be more expensive for Michigan consumers, thanks to a lawsuit settlement by merchants against Visa Inc. and Mastercard Inc, according to a report by the Associated Press. In part of the settlement, the credit card companies agreed to allow merchants to charge surcharges. Credit card companies typically charge merchants 1.5 to 3 percent per transaction for surcharges. Merchants have had to figure this in their cost of doing business.
This affects the majority of states, including Michigan.
The settlement awaits approval in U.S. District Court, which may not happen until the end of the year, or even later, according to the “The Wall Street Journal.”
At that time, merchants may assess an extra 2.5 percent or 3 percent, when using a credit card.
The settlement doesn’t include debit cards.
American Express Co. and Discover Financial Services will also permit the surcharges.
Visa, Mastercard in $6 billion settlement over card fees
The Oakland Press
Q&A: How the Credit Card Settlement Affects You
The Wall Street Journal