Will credit card users now have to pay swipe fees?

[Forever Sunshine]

The massive Visa-MasterCard settlement ends a long-running battle with merchants, but also opens the door for retailers to charge customers extra.

Visa (V +0.85%), MasterCard (MA -0.28%), and several banks have agreed to pay $7.25 billion to settle antitrust charges that were brought by 7 million merchants -- a diverse group ranging from the nation's largest chains to mom-and-pop shops.

If the deal is approved by a federal judge, it would end a long-running dispute over the "swipe fee" -- 2% to 5% of the bill -- that Visa and MasterCard charge merchants every time a customer uses plastic. Under the terms of the settlement, Visa, MasterCard, and the banks would pay out $6 billion in penalties and reduce the swipe fee. In addition, merchants would be allowed to levy a surcharge on customers who use credit cards, which would let them recoup the cost of the reduced swipe fee.

Are retailers likely to do so?

Yep. Customers should expect to start paying more: Many retailers will likely impose a new "checkout fee" for consumers paying with credit cards, says Susanna Kim at ABC News. While big chains like Wal-Mart (WMT +0.16%) and Target (TGT -0.39%) may decide that they can afford to eat the costs of the swipe fee in order to retain customer loyalty, struggling mom-and-pop shops around the country are more likely to take advantage of this windfall.

money.msn.com/top-stocks/post.aspx?post=78b2532d-05ab-45bf-9d30-6400a5c82be5

[a]

Cash is always a viable alternative.

Edit: As is the debit card.

[Forever Sunshine]

That's what I do. ;D

[a]

I use a Kroger credit card at the grocery store to get a 10 cent a gallon gas discount for every $100 spent and another 5 cents for using the card. I don't normally spend over $200 a month and don't normally gas up more than once a month. So, 25 cents off a gallon is what it usually comes out to.