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LOUISVILLE, Ky. (WDRB) -- Customers will have to start paying an extra fee for using a credit cards at retail stores.
This comes after a settlement was reached last July between retailers, nine major banks and Visa and MasterCard in a legal case over electronic payment costs.
Retailers now have the option to charge a checkout fee when you use your credit card. The new checkout fee would offset the fee retailers pay credit card processors. The swipe fee cannot be higher than what the dealer actually pays, which is usually no more than 3 percent of the transaction.
Experts say millions will never see checkout fees because 10 states have formally banned the practice.
But retailers in Kentucky and Indiana are allowed to tack on that checkout fee.
The best way to avoid the checkout fee is to pay with cash or a debit card at retailers.