Most of us have gotten used to charging purchases, large and small, on a debit or credit card. Just swipe the card and avoid the hassle of carrying cash. Look carefully; you may notice a new fee on your receipt. Better Business Bureau of Southern Arizona is advising consumers that retailers are now allowed to pass along to consumers the cost of processing credit cards.

It’s called “merchant surcharging” and it’s permitted in most states. You can be charged up to four percent on each transaction and, similar to sale taxes, merchant surcharging can be automatically added to your bill. After a while, these charges can add up, so consumers may want to reconsider how they pay for goods and services.

Why now? Well, merchants have long been charged a processing fee by the credit card companies when consumers chose to charge their purchases. Previously, the fee could not be passed along to customers. However, as a result of litigation, merchants in the U.S. and its territories can pass that fee along directly to customers using credit cards (but not debit or prepaid cards).

What can consumers do?

• Use cash for smaller purchases; some retailers may offer you a discount if you pay with cash
• Look for notices about merchant surcharges; retailers are required to let you know so you can decide beforehand if you want to pay with a credit card
• If you know and trust the merchant, you might want to consider using a debit card with “bricks and mortar” establishments
• Use a credit card for online purchases when you need the greater protections that credit cards offer
• Get into the habit of monitoring your bank account and credit cards accounts online
• Several states have banned merchant surcharges: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas. In other states, it’s optional, and will vary from store to store.

For more information on managing your credit, check out BBB’s “Managing Credit – Made Simple” at bbb.org/credit-management

A travel agency can make the process of booking your spring vacation quick and painless, but choosing the wrong agency can turn your dream vacation into a nightmare. Better Business Bureau of Southern Arizona is advising consumers to do their research before booking their next vacation.

In 2012, BBB received more than 7,000 complaints nationally against travel agencies and bureaus. Most complaints allege consumers felt misled by travel offers that failed to deliver on promises, or worse, paid money for travel arrangements that were never made.

Follow these tips from your BBB to ensure your trip will be memorable for all the right reasons:

• Use a travel company you trust. Ask family and friends to recommend a company they’ve used and go to bbb.org to see the company’s BBB Business Review. You can also utilize BBB Member Pages to find a BBB Accredited Business to work with.
• Get all vacation details in writing. Get all the details of your vacation in writing, including travel itineraries and booking confirmations. Get a copy of the company’s cancellation and refund policies, and ask questions.
• Verify reservations. Get the contact information for the airline, car rental company and hotel you’ll be using. Call to confirm all arrangements.
• Consider travel insurance. Travel insurance is designed to cover such things as trip cancellations or medical emergencies. Before purchasing any type of travelers insurance check your homeowner’s or medical insurance policies to see what is already covered.
• Pay with a credit card. Paying with a credit card gives you additional protections should something go wrong with the travel reservation.
  
• Be on the alert for travel scams. Unsolicited mail, email and faxes offering deeply discounted travel packages could leave you out a vacation and money if you’re not careful.

Many consumers own both credit and debit cards, but may not know when to use one or the other. Because there are differences in how debit and credit cards are processed, here are 4 scenarios for when to use a credit card over a debit card.

1. Shopping Online:

BBB receives thousands of complaints every year from consumers who purchase items online and never receive them. Federal regulation generally requires an item to be delivered within 30 days, but using a debit card will make a refund more difficult to get. A credit card will allow you to dispute the charge, if it is more than $50, up to 60 days from the purchase date and give you a better chance of getting your money back.

2. Paying Deposits Upfront:

Many contracts for home improvement projects or subscription services require down payments followed by regularly scheduled payments. Many times scammers try to take these deposits and disappear so using a credit card will allow you to recoup those lost funds.

3. Setting Up Automatic Payments:

Service providers such as gyms, cell phone companies, cable providers and utility services offer consumers the option of setting up automatic deductions on their account. The goal is for you to never forget to make a payment, but billing mistakes can be made by a company’s computer system causing you to pay more. Instead of money coming directly from your bank account with a debit card, you can catch the mistake on your credit card bill and without money ever leaving your account.

4. Planning Travel Arrangements:

Most consumers book hotels and/or rental cars well in advance, but they can place holds or deposits on your account for hundreds of dollars as a security deposit. If you use a debit card, this money will be taken out of your account immediately and you run the risk of over drafting if you are not careful. Using a credit card however can make this additional charge unnoticeable for at least 30 days and give you time to cancel should your travel plans change.