What are credit card convenience fees and how can you avoid them?

PITTSBURGH — Convenience fees for using a credit card are popping up everywhere, from paying for school lunch to paying utilities.

“This means I spend over $400 a year in convenience fees,” wrote one Facebook user after she got hit with a $36 convenience fee to pay her monthly rent.

It is legal in many states, including Pennsylvania, for companies to pass along the cost to consumers. But there is a limit.

“The cap is 4% in states where they can charge these fees,” said Sara Rathner, a credit card expert with Nerd Wallet.

Businesses have long been paying a fee for offering their customers the convenience of using a credit card as payment, but now more and more of them are passing the buck to consumers.

Gary Lokers is a food truck owner who used to pay the price to accept credit cards.

“I was probably dishing out $50 to $60 a week,” said Lokers.

Lokers recently announced to customers that they would be picking up the tab for those fees.

“I’ve had more customers be okay with that,” said Lokers. “They understand that. They’re like, ‘yeah we don’t want to hurt your business,’ so you know it’s increased my cash sales.”

One way to get around paying fees is to use cash.

You can go old school and pay by check or set up an online deduction from your checking account to bypass fees.

Some stores are even announcing they “don’t charge a fee” hoping to get customers in the door.

Whether it’s a trip to the coffee shop or the dog groomer, it’s a good idea to ask if there’s a discount for not using plastic.

Finally, to help families afford school lunches the USDA has announced that parents of students who are eligible for reduced-price meals can no longer be charged a processing fee beginning in the 2027-28 school year. However, officials have encouraged school districts to make the change as soon as possible.

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