TO GO WITH SKorea-creditcard-retail-economy FEATURE by Nam You-SunIn a picture taken on April 1, 2011 a South Korean cashier swipes credit card to a card register machine at a shop in Seoul. South Koreans' usage of credit cards as a percentage of total consumption reached 54.9 percent in the first half of 2010 compared to 34.6 percent in the US and 43.9 percent in Britain, Seoul's Credit Finance Association says. AFP PHOTO / PARK JI-HWAN (Photo credit should read PARK JI-HWAN/AFP/Getty Images) Credit-card machine (file/credit: Behrouz Mehri/AFP/Getty Images)

HOBOKEN, N.J. (CBSNewYork) — Using a credit card could be costly in New Jersey starting Sunday, as retailers gain the right to add a checkout fee of 4 percent for credit purchases.

As CBS 2’s Alice Gainer reported, the purpose from the merchants’ perspective is to offset the 3 percent swipe fee that the credit card companies charge retailers.

Financial expert Kelli Grant said those businesses hit hard by the 3 percent fee will most likely pass it on to the consumer, “to actually discourage people from paying credit when they think ideally you should be paying cash.”

But if retailers choose to impose the surcharge, they are required to tell the customer before the customer makes a purchase.

Still, consumers do not like the new fee at all.

“The way the economy is now, our taxes, and to put this on top of everything else is not good,” said Jim Farina of Hoboken.

Dina from Hackensack told 1010 WINS’ Glenn Schuck Saturday that she was unaware that the new charge was coming.

“I think it’s outrageous,” she said. “Besides the fact that we pay a high percentage for credit cards, to pay an extra 4 percent, I think it’s totally outrageous.”

Tammy from Waldwick called it cruel.

“And unfortunately, they’re taking advantage of people who don’t have the money, and they’re putting it on their charge cards,” she said. “Especially with all that just happened – Sandy – people don’t have the money, and people are struggling.”

One consumer, Oscar from Fort Lee, told WCBS 880’s Monica Miller he has chopped up his plastic because of surcharges, and pays for things only in cash.

“I stopped with credit cards,” he said. “I had too much problems with it.”