Retailers Are Adding Extra Fees and Surcharges
Across the United States, a quiet but significant shift is taking place at the checkout counter. A growing number of retailers are adding extra fees and surcharges to customer transactions—charges that often go unnoticed until it’s too late.
Whether it’s a small coffee shop, a family-run hardware store, or even larger retail chains, businesses are increasingly passing along costs in the form of additional line items on receipts. What once might have been absorbed as the cost of doing business is now being transferred directly to the consumer.
Credit Card Surcharges on the Rise
One of the most common new charges consumers are seeing is the credit card processing fee, often ranging from 2% to 4% of the total purchase. Retailers say they’re simply offsetting the fees imposed by credit card companies such as Visa and Mastercard, rather than eating the cost themselves.
“It’s frustrating, but the margins are so thin now,” said Emily Rosen, who owns a boutique clothing store in Denver. “I used to just accept the card fees as part of the overhead, but with inflation and wage increases, I can’t do that anymore.”
Some businesses now offer discounts to customers who pay with cash or debit instead, effectively penalizing credit card use. This practice, while legal in most states, is increasingly contentious, especially when not clearly disclosed prior to purchase.
Tariff-Related Charges Add Complexity
Beyond payment processing fees, another layer of surcharges comes from the impact of tariffs, particularly those related to trade with China and other key international suppliers. As tariffs on certain goods have increased in recent years, some businesses have responded by instituting a “tariff recovery fee,” often buried in the fine print or tagged onto specific product categories.
Jeff Stone, who owns a consumer electronics store in Chicago, explained, “Many of our parts and devices are imported, and when tariffs hit, we had two options: raise prices across the board or create a fee. We went with the fee because it allowed us to keep our pricing competitive—but it still sparks complaints.”
Consumers Feel Misled and Frustrated
For many shoppers, the issue isn’t just the fee itself—it’s the lack of transparency. Additional costs that aren’t clearly advertised before checkout are creating tension between businesses and customers. According to a recent survey by Morning Consult, nearly 60% of respondents said they’ve been surprised by an unexpected fee while shopping in the past six months.
“I was buying a sandwich and coffee,” said Jamie Mendoza of Brooklyn. “Then I see there’s a 3.5% surcharge for using my credit card. That’s not a small number on a $15 lunch. It adds up, and nobody mentioned it before I paid.”
The frustration is spreading online. Social media platforms are awash in screenshots of receipts showing unexplained surcharges, accompanied by calls for boycotts or reviews urging transparency. Viral TikToks and Reddit threads are warning fellow consumers to “read the fine print” and “pay cash when you can.”
Retailers Defend the Practice
Retailers argue they are caught in a bind. With inflation still affecting supply chains, wages rising in many states due to minimum wage increases, and the lingering economic effects of the pandemic, many businesses say they have limited choices.
“Every single cost is going up,” said Mike Gallagher, owner of a chain of pizzerias in Ohio. “Cheese is more expensive. Flour is more expensive. Labor is more expensive. I either raise prices on the menu—which scares off customers—or I add a fee and hope people understand. Neither option is great.”
Some restaurant and service industry operators have taken to explaining the fees directly on menus or checkout screens to mitigate blowback. Still, the message isn’t always getting through.
Lawmakers and Advocates Push for Change
Consumer advocates are urging states to step in. In California and New York, lawmakers are introducing bills that would require businesses to disclose any surcharges before purchase, rather than springing them on customers at checkout or on receipts.
“Transparency should be the bare minimum,” said Linda McCarthy, a policy analyst with the Consumer Federation of America. “If you’re charging a credit card fee, say it on the menu or display it clearly before the card is swiped. No one wants to feel tricked.”
Meanwhile, some legal experts warn that a lack of disclosure could open businesses up to regulatory scrutiny—or even lawsuits—depending on the state’s consumer protection laws.
What Can Shoppers Do?
While the fees may be here to stay for the foreseeable future, experts say consumers can take steps to minimize the surprise and even avoid paying extra:
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Ask about fees before you pay. Especially in small businesses, staff are often willing to clarify whether there’s a surcharge for cards or other hidden fees.
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Use cash or debit when possible. This avoids credit card surcharges and can sometimes earn a discount.
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Check receipts carefully. If you see a fee that wasn’t disclosed, politely ask about it or leave a review to alert other customers.
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Support transparency. Businesses that clearly post fees and treat customers fairly are more likely to earn long-term loyalty.
The Road Ahead
As long as inflationary pressures and trade-related costs continue, experts believe the trend toward “fee-flation” will persist—at least in the short term. Whether consumers will tolerate this new cost structure or demand greater accountability remains to be seen.
