About Union
About Union

Credit Card Merchant Fees

Keeping you in the know:

You may have seen some news articles that describe a new fee where retailers can now add up to 4%* of the purchase price to your transaction just for using a credit card. Here’s what you need to know and how it may impact you.

As a result of court settlement between merchants and Visa® and MasterCard®, merchants are now allowed to impose a 4% checkout fee to all credit card transactions. The key word is allowed. Merchants are not required to impose the fee; it is up to each merchant to decide whether or not to charge a checkout fee as a part of their pricing structure.


This is not a charge or a fee that Union (or any other bank or credit card company) is imposing. The only party responsible for choosing whether or not to collect this fee is the retailer. Additionally, the only party who receives any income from the fee is the retailer.

There are three things that a merchant must do in order to charge this fee:

  1. It can only be imposed on credit cards. It cannot be imposed on debit cards, regardless of if you choose "debit" or "credit" at the checkout terminal.
  2. The merchant must disclose the fact that their place of business assesses a checkout fee at the point of store entry and at the point of sale.
  3. Merchants must also disclose the actual dollar amount of the surcharge on every receipt.

Not every retailer will implement this checkout fee. In fact, most retailers have already made a business decision to not impact their customer base with this optional fee. As a savvy consumer, keep an eye out for merchant disclosures in order to make the best financial decisions for you.

*(and should not exceed 4% in any event)

Union Bank & Trust
Mailing Address:
P.O. Box 940
Ruther Glen, VA 22546