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

Starting today, some homeowners who are “under water” with their mortgages can refinance under the Home Affordable Refinance Program (HARP), but the Better Business Bureau of Southern Arizona is warning consumers that banks and mortgage companies aren’t the only ones gearing up for the rush of applications.

“Whenever there is a new or updated government program that may be a bit confusing, scammers come out of the woodwork to take advantage of that confusion,” said Kim States, BBB President. “There are already hundreds of websites claiming to be able to help homeowners through the HARP process, but many of them are rip-offs and scams.”

BBB is warning all homeowners who are thinking of applying for a HARP refinance to:

• Deal directly with your lender first, and never make payments to anyone other than your lender.
• Don’t pay upfront fees to anyone who promises to provide counseling, takes care of the paperwork for you, or stops the foreclosure process.
• Be wary of anyone who tells you not to contact your lender, a lawyer or a credit counselor, or who asks for payment by cashier’s check or wire transfer.
• Never sign over your deed to anyone, or allow yourself to be pressured into signing something you don’t understand.
• Be especially careful of look-alike and sound-alike websites.
• Find out if you qualify by going to www.makinghomeaffordable.gov or by calling the Homeowner’s HOPE Hotline at 1-888-995-HOPE (4673) to speak to a HUD-approved housing counselor for free (assistance is available in English and Spanish, and in other languages by appointment).
• Report scams to BBB at www.bbb.org/us/scam-source.

The changes to the HARP program were announced by President Obama in October to allow (more…)

More changes to the rules for credit card companies are on the way, effective August 22nd.  These changes will affect penalty fees and rate increases on your credit card account.

The Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009 mandated a lot of changes to the credit card industry.  Some of those changes went into effect on February 22nd, 2010.  They included: 45 days notice for interest rate changes; ability to opt out of changes and pay off your balance over 5 years; restrictions on getting a credit card under age 21; and no more double billing cycles.  Now another set of changes is going into effect on August 22nd.  According to the Federal Reserve Board, here’s what these new credit card rules include:

• Reasonable late-payment penalty fees. In the past you paid the same expensive late fee whether your minimum required payment was small or large.  The new rule says that your credit (more…)