JONESBORO, Ark. — The rising trend of businesses in Arkansas adding extra fees at checkout is putting additional strain on already tight college student budgets.
According to the Arkansas Attorney General's Office, several types of fees can be applied during transactions. Convenience fees may be charged to cover the costs of using non-standard payment methods, such as paying online. These fees may apply to both credit and debit card transactions but are typically limited to specific kinds of payments, like government services or tuition.
Surcharges, however, apply specifically to credit card transactions. They are capped at 3% in Arkansas and are designed to help businesses offset processing fees charged by payment services. Debit card purchases cannot be subject to surcharges under state law.
For college students, these additional costs can quickly add up. Talonnie Grimes, a student, said the fees exacerbate the financial challenges of budgeting.
"I feel like since we already have to pay taxes and everything, and some businesses have percentages on top of that, I feel like they shouldn’t do that because after a while, this just starts to add up," Grimes said.
Classmates Jadyn Brown and Amina Jones shared similar frustrations, addressing the added burden of these fees on already expensive goods.
“I just don’t understand why y’all taking the percentage off my card when y’all are already taking it," Brown and Jones said. "The meal already [is] going to be high."
Local businesses also face challenges associated with rising operational costs. One local business owner, speaking anonymously, explained that credit card processors typically charge both a monthly account fee and a per-transaction cut. The introduction of surcharges allows businesses to pass those costs on to customers instead of absorbing them, which can be unsustainable for many small businesses.
The Arkansas Attorney General’s Office states that these practices, while legal, have limitations. Surcharges can only apply to credit card payments, and convenience fees must be disclosed to customers prior to making a transaction.
With the fees becoming more common, appearing everywhere from local stores to large retail chains, students and lower-income residents may face increasing difficulty balancing financial responsibilities. At the same time, many small businesses point to the necessity of these fees to stay afloat amid rising costs.
For additional information or to report concerns about excessive charges, residents may contact the Arkansas Attorney General's Office.