TIPS for not getting bilked when using a credit card

If you hate to carry cash and rely on plastic to pay for your purchases, you could be getting ripped off at the register.

You’ve probably seen those little signs taped to the checkout counter at the corner store announcing credit-card minimum purchase amounts or extra fees. Can they do that?

Credit-card users who don’t know their rights could wind up paying more than they should for using their plastic.

1. Can a store require me to make a $10 minimum purchase if I use my credit card?

Nope. Stop running around the store buying unwanted gum and soda. Your shopping bill doesn’t have to top some minimum purchase amount posted. You can use your credit card for any amount you choose.

2. What about those signs that say there’s a $1 fee to use a credit card?

Another big no! You should only pay for what you buy. That means little added credit-card fees are out.

3. But I see signs like that everywhere!

So do we. But no can-do. The fees and minimum purchase requirements are not illegal, but merchants who charge them are breaking their contracts with the credit-card companies.

4. So why do stores keep charging me fees or require minimum purchases? Merchants insist it’s not to rip you off; it’s because every time you pay with plastic they pay a fee to the credit-card company — sometimes more than 4 percent of your purchase. Retailers say these fees add up to $30 billion a year and that their only alternatives are either to refuse to take credit cards or to raise prices.

5. At the gas station I go to, the sign says: “Discount for cash.” Isn’t that the same as charging more to use a credit card? Go with us here: No, it’s OK to give cash customers a break. You just can’t punish people for using plastic. We don’t make the rules; we just try to explain them.

6. So what should I do the next time I see one of those signs in a store? Call VISA, MasterCard or your credit-card company’s customer service number and report it. Some even have hotlines set up to take info on stores that are breaking the rules. They will call the stores and remind them that they can’t hit up their customers for the fees.

7. But what if I’m standing in a store and need to make my purchase with plastic that moment?

Politely ask for the manager or person in charge, and explain that they aren’t supposed to be charging fees or insisting on minimum purchases. Some store managers admit that when customers insist, “You can’t do that,” the fees and minimums suddenly disappear. {EXA}

Award-winning investigative reporter Hank Phillippi Ryan is on the air at Boston’s NBC affiliate where she has broken big stories for the past 22 years. She has won 24 Emmys as well as dozens of other regional, national and international honors for her work. She is also a best-selling mystery novelist  http://www.hankphillippiryan.com). Mary Schwager has worked with Ryan as an investigative producer for eight years and has her own shelf of prestigious journalism awards. A 16-year television veteran, she has been a writer, producer and reporter. They can be contacted at  hryan at whdh.com and  mschwager at whdh.com.