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Credit card convenience fees are charges assessed by a merchant for the use of a credit or debit card for payment.
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What Are Credit Card Convenience Fees? Credit card convenience fees are charges assessed by a merchant for the use of a credit or debit card for payment. These fees are also sometimes called "checkout fees," "service charges," or "processing fees." Convenience fees are not always transparent to consumers, as they are often buried in the fine print of a merchant's billing practices.
In most cases, credit card convenience fees are assessed by merchants who process credit or debit card transactions manually, rather than through an electronic point-of-sale system. These businesses may include service providers such as plumbers, electricians, or lawn care services. In some cases, convenience fees may also be charged by online retailers or businesses that process credit card payments over the phone.
The practise of charging credit card convenience fees is controversial, as it effectively raises the price of goods and services for consumers who choose to pay with plastic. In some cases, these fees may be illegal, depending on the state in which the transaction takes place. However, many businesses continue to charge them, so it's important for consumers to be aware of the potential fees before they make a purchase.
If you're ever charged a credit card convenience fee, you have the right to dispute the charge with your credit card issuer. If you believe that the fee is unfair or unjustified, you can also file a complaint with your state's attorney general's office or the Consumer Financial Protection Bureau.
