Nation's Consumers Put Retailers on Notice:
Seller Beware!

Check Out Fees Imposed on Consumers Who Pay with Credit or Debit is Unfair According to 89% in ACEC National Survey

Unfair Practice of "Check Out Fees" Cast Negative Light on Merchants Who Surcharge Say Majority of Those Polled

Survey Indicates Nearly 29 million Americans May Have Been Charged Check Out Fees in 2005

Washington, D.C. (January 25, 2006) – An overwhelming majority of consumers believe imposing check out fees on those who pay with plastic is an unfair practice and would not purchase goods from merchants who penalize debit and credit card users, according to a national survey released today by Americans for Consumer Education and Competition (ACEC).

"Consumers who pay with plastic shouldn't be discriminated against for preferring an easy and safe choice of payment." stated Susan Molinari, National Chairperson for ACEC. "Consumers clearly prefer to use their debit card these days over cash for purposes of convenience and security and they're not going to tolerate an unfair check out fee that hampers this unstoppable trend toward electronic payment. This is the 21st century. We are buying items through the Internet, paying bills and banking online and buying goods at our local stores with the swipe of a card."

Molinari said the ACEC poll, a national survey of 1,000 American adults, indicated that 62% of American adults would abandon their purchase if charged a check out fee for using a debit or credit card. Eighty-two percent of those who reported being surcharged were charged check out fees in the past year. And, 62% of those who have been surcharged said getting hit with the fee gave them a negative impression of the retailer. Check out fees, often unnoticed by consumers, is a method practiced by some merchants to recoup fees they pay for the advantage of offering credit and debit options to their customers.

"Less than 20 states have laws that ban merchants from charging consumers check out fees when they pay with a credit or debit card," said Molinari. "Consumers need to alert their state legislators to this problem and urge them to pass laws that ban merchant imposed check out fees. Doing this will ensure that consumer rights are protected and that a movement by merchants to surcharge comes to an abrupt halt."

States that ban surcharging or "check out fees" for consumers who pay with plastic are: California, Colorado, Texas, Oklahoma, Connecticut, Florida, Kansas, Maine, and New York. New Hampshire specifically bans surcharging by travel companies and Kentucky bans surcharging by restaurants for tips if they are included on a credit transaction. Wyoming, Washington, Maryland and Massachusetts allow merchants to offer a cash discount to the customer who pays with cash rather than credit, as do many other states.

"Many consumers aren't sure when they have been charged check out fees for paying with plastic and so consumer awareness and enforcement of surcharge bans in those states that have laws is not at the level it must be," cautioned Molinari.

Molinari noted that merchants attract more customers, gain higher sales volumes and generate larger average sales when they accept electronic payments like debit and credit at their stores. Retailers and consumers enjoy a secure electronic system that quickly processes transactions and merchants benefit from providing that choice. Surcharging, in effect she said, is charging consumers for their own goods and the retailer’s decision to provide the credit option.

"Consumers are the DEMAND half of 'supply and demand' and it's illogical to penalize the majority of them who keep stores and services afloat with their business," said Molinari. "When 89% of those polled say check out fees are unfair, I think it would be wise for merchants to refrain from biting the hand that feeds them."

For more information on ACEC's latest national poll, go to www.todaysmoneymatters.org. Americans for Consumer Education & Competition advocates for financial literacy and consumer rights initiatives. ACEC communicates with more than 25 thousand consumers interested in issues from financial literacy to budgeting for retirement to cardholder benefits and rights. In addition, ACEC serves as a clearing-house for information on financial issues, as the organization monitors, tracks and provides analysis of financial legislation and litigation that has a direct impact on consumers. The organization enjoys the financial support of VISA USA.

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For More Information, Contact:
Rebecca Reid
Executive Director
Americans for Consumer Education & Competition
Office: 410-267-1128. Cell: 410-212-3843