Will paying with plastic cost you more?

On Monday, the Department of Justice came to a settlement agreement with Visa and MasterCard. The decision was a long time coming (two years), and the details are fairly complex. The upshot for consumers is simple, though: Merchants are now allowed to create pricing tiers based on how you pay, so pulling out the plastic could cost more than paying cash.

Many consumers think all methods of payment are created equal, but from the merchant's point of view, they're not. Stores have to pay what's called an "interchange fee" -- generally one to three cents per dollar spent -- every time you pay with a credit card. Reward credit cards command higher fees, which is why card companies can afford to dole out those points or miles you accrue when you spend.