Reporting A Merchant For Charing To Use Credit...

[Steezy]

So I attend a college where they allow you to pay with credit...

 

I always thought it sucked that I couldn't put my tuition on credit because they charge a 2.75% fee for using credit... Here is the exact wording from the website

 

"Payment by credit/debit card is only possible via the web. NOTE: Beginning August 1, 2005, all credit/debit card transactions will be assessed a 2.75% convenience fee. Also, the university will no longer accept VISA but will begin accepting American Express."

 

So I was just reading a thread here that said this is illegal...

http://creditboards.com/forums/index.php?s...t&p=3759595

 

...Which prompted me to google search the legality of this issue, which lead me to this article -

http://www.bustachange.com/charging-you-to...ard-is-illegal/

 

What do you think?

 

I know a lot of people who go to this university... I could get A LOT of people to complain within a matter of days.

 

How would I go about reporting my university?

[firefighter 161]

They are going to get away with this because they make you do it online and I guarantee you they will have "a third party" handling it.

 

My water, cable, and electric company all do this, they use a 3rd party that charges you for "processing the payment" for you but i am positive they are sharing the fee, its a loop hole that should be closed.

 

My cable company even installed a nice ATM looking machine in the lobby where you can make credit card payments, but it has some type of disclaimer on it that its "operated by a 3rd party payment processing blah blah blah, there will be a fee blah blah blah" I would complain except if you go to the water or electric company and try to pay with a credit card they give you a slip of paper with there website and an 1-800 number....

[GEORGE]

So I attend a college where they allow you to pay with credit...

 

I always thought it sucked that I couldn't put my tuition on credit because they charge a 2.75% fee for using credit... Here is the exact wording from the website

 

"Payment by credit/debit card is only possible via the web. NOTE: Beginning August 1, 2005, all credit/debit card transactions will be assessed a 2.75% convenience fee. Also, the university will no longer accept VISA but will begin accepting American Express."

 

So I was just reading a thread here that said this is illegal...

http://creditboards.com/forums/index.php?s...t&p=3759595

 

...Which prompted me to google search the legality of this issue, which lead me to this article -

http://www.bustachange.com/charging-you-to...ard-is-illegal/

 

What do you think?

 

I know a lot of people who go to this university... I could get A LOT of people to complain within a matter of days.

 

How would I go about reporting my university?

It is a 3rd party fee

 

IT IS LEGAL SAD TO SAY (and no credit card violation)

[nothingtolose]

So I attend a college where they allow you to pay with credit...

 

I always thought it sucked that I couldn't put my tuition on credit because they charge a 2.75% fee for using credit... Here is the exact wording from the website

 

"Payment by credit/debit card is only possible via the web. NOTE: Beginning August 1, 2005, all credit/debit card transactions will be assessed a 2.75% convenience fee. Also, the university will no longer accept VISA but will begin accepting American Express."

 

So I was just reading a thread here that said this is illegal...

http://creditboards.com/forums/index.php?s...t&p=3759595

 

...Which prompted me to google search the legality of this issue, which lead me to this article -

http://www.bustachange.com/charging-you-to...ard-is-illegal/

 

What do you think?

 

I know a lot of people who go to this university... I could get A LOT of people to complain within a matter of days.

 

How would I go about reporting my university?

 

It's a convenience fee, it is legal and permitted by the merchant agreement AFAIK.

 

In general, for reporting merchant CC usage surcharges and other violations, I'd check out this thread http://creditboards.com/forums/index.php?showtopic=379305

[GEORGE]

So I attend a college where they allow you to pay with credit...

 

I always thought it sucked that I couldn't put my tuition on credit because they charge a 2.75% fee for using credit... Here is the exact wording from the website

 

"Payment by credit/debit card is only possible via the web. NOTE: Beginning August 1, 2005, all credit/debit card transactions will be assessed a 2.75% convenience fee. Also, the university will no longer accept VISA but will begin accepting American Express."

 

So I was just reading a thread here that said this is illegal...

http://creditboards.com/forums/index.php?s...t&p=3759595

 

...Which prompted me to google search the legality of this issue, which lead me to this article -

http://www.bustachange.com/charging-you-to...ard-is-illegal/

 

What do you think?

 

I know a lot of people who go to this university... I could get A LOT of people to complain within a matter of days.

 

How would I go about reporting my university?

 

It's a convenience fee, it is legal and permitted by the merchant agreement AFAIK.

 

In general, for reporting merchant CC usage surcharges and other violations, I'd check out this thread http://creditboards.com/forums/index.php?showtopic=379305

I always get a laugh out of that word

 

 

No convience for me to pay a HIGHER price to use my credit card

[improper_validation]

What state? It may be illegal due to a state law.

[GEORGE]

What state? It may be illegal due to a state law.

DOUBT IT sorry to say

[improper_validation]

What state? It may be illegal due to a state law.

DOUBT IT sorry to say

 

Actually...

 

MAINE POSSESSES A "NO SURCHARGE RULE" FOR CONSUMER PURCHASES

 

"No seller...may impose a surcharge on a cardholder who elects to use a credit card in lieu of payment by cash, check or similar means."

 

Statute: Maine Rev. Stat. Ann. tit. 9-A, § 8-303(2) (See also id. § 8-103 (definitions and rules of construction))

ALSO

The states of Colorado, Maine, Massachusetts and Oklahoma additionally require that the cash discount be clearly and conspicuously disclosed to customers.

 

I recently reported a place and got instant results.

 

http://www.maine.gov/pfr/consumercredit/index.shtml

Edited June 15, 2009 by wcnghj

[nothingtolose]

What state? It may be illegal due to a state law.

DOUBT IT sorry to say

 

Actually...

 

MAINE POSSESSES A "NO SURCHARGE RULE" FOR CONSUMER PURCHASES

 

"No seller...may impose a surcharge on a cardholder who elects to use a credit card in lieu of payment by cash, check or similar means."

 

Statute: Maine Rev. Stat. Ann. tit. 9-A, § 8-303(2) (See also id. § 8-103 (definitions and rules of construction))

ALSO

The states of Colorado, Maine, Massachusetts and Oklahoma additionally require that the cash discount be clearly and conspicuously disclosed to customers.

 

I recently reported a place and got instant results.

 

http://www.maine.gov/pfr/consumercredit/index.shtml

 

AFAIK the merchant itself cannot do it, but if a third party processor is used by the merchant to accept CC pmts, then it's a convenience fee, which is permitted, I am not 100% certain on this though

[firefighter 161]

What state? It may be illegal due to a state law.

DOUBT IT sorry to say

 

Actually...

 

MAINE POSSESSES A "NO SURCHARGE RULE" FOR CONSUMER PURCHASES

 

"No seller...may impose a surcharge on a cardholder who elects to use a credit card in lieu of payment by cash, check or similar means."

 

Statute: Maine Rev. Stat. Ann. tit. 9-A, § 8-303(2) (See also id. § 8-103 (definitions and rules of construction))

ALSO

The states of Colorado, Maine, Massachusetts and Oklahoma additionally require that the cash discount be clearly and conspicuously disclosed to customers.

 

I recently reported a place and got instant results.

 

http://www.maine.gov/pfr/consumercredit/index.shtml

 

 

I think your missing the key element here... "Third Party"

 

They will hire some "Web Bill Payer, LLC" to process the payment...the "merchant/seller" will not actually be charging you a surcharge...the "third party" who is processing the payment will be.

 

Legally, you will pay "Web Bill Payer, LLC" who will then pay "State/Public/Private University" on your behalf...

 

It's a loop hole... and I personally think they "share" in the convenience fee or have some kind of other underhanded agreement that makes it profitable to use this 3rd party loop hole.

 

My electric company is a large publicly traded fortune 200 company, believe me if this loop hole wasn't legal there would be multi-million dollar class actions...

Edited June 15, 2009 by firefighter 161

[GEORGE]

What state? It may be illegal due to a state law.

DOUBT IT sorry to say

 

Actually...

 

MAINE POSSESSES A "NO SURCHARGE RULE" FOR CONSUMER PURCHASES

 

"No seller...may impose a surcharge on a cardholder who elects to use a credit card in lieu of payment by cash, check or similar means."

 

Statute: Maine Rev. Stat. Ann. tit. 9-A, § 8-303(2) (See also id. § 8-103 (definitions and rules of construction))

ALSO

The states of Colorado, Maine, Massachusetts and Oklahoma additionally require that the cash discount be clearly and conspicuously disclosed to customers.

 

I recently reported a place and got instant results.

 

http://www.maine.gov/pfr/consumercredit/index.shtml

TELL THAT TO THE 3rd PARTY PROCESSORS

Edited June 15, 2009 by GEORGE

[GEORGE]

THE CITY SEWER SYSTEM WENT TO A 3rd PARTY PROCESSOR

 

I would now have to pay a fee to use my credit card

 

They said they didn't charge a fee before they just rolled it into the total cost for the service

 

So people who wrote a check or paid cash at the office paid more (or CHECK by mail)

 

Now they only charge people who use the 3rd party

 

Trouble is the price for the "SERVICE" went up $6 or $7 (I THINK) this month

 

 

GAS COMPANY 3rd PARTY PROCESSOR ALSO

Edited June 15, 2009 by GEORGE

[breeze]

Moving to the VISA M/C forum.

[Steezy]

The university is in Oklahoma...

 

Could someone explain this "state law" thing further???

 

What state? It may be illegal due to a state law.

DOUBT IT sorry to say

 

Actually...

 

MAINE POSSESSES A "NO SURCHARGE RULE" FOR CONSUMER PURCHASES

 

"No seller...may impose a surcharge on a cardholder who elects to use a credit card in lieu of payment by cash, check or similar means."

 

Statute: Maine Rev. Stat. Ann. tit. 9-A, § 8-303(2) (See also id. § 8-103 (definitions and rules of construction))

ALSO

The states of Colorado, Maine, Massachusetts and Oklahoma additionally require that the cash discount be clearly and conspicuously disclosed to customers.

 

I recently reported a place and got instant results.

 

http://www.maine.gov/pfr/consumercredit/index.shtml

 

EDIT: Should have posted in the policies forum... Thanks for the move.

Edited June 15, 2009 by Steezy

[Uncle Leo]

Yes, the difference here is "third party". You're not really paying your tuition... you're paying somebody to act as a middleman and pay your tuition for you.

[webworm98]

Well explain this George and Uncle Leo.

 

News

 

It is still a third party. Visa said no surcharges.

 

What gets me is it a government agency and they are allowed to do a surcharge.

Edited June 15, 2009 by webworm98

[centex]

The other thing here is that government agencies (ie. state university) are usually excepted from the surcharge requirement because of the fact that they cannot discount the costs of the tuition to absorb the fee...as such, the fee is proscribed in law as being permissible to assess to the payer.

[GEORGE]

IT IS ALWAYS THAT CREDIT CARD FEE...

=====================

IT IS NEVER THE...

 

WATER

SEWER

TRASH

GAS

ELECTRIC

PHONE

 

How does anybody ever afford to be in business???

 

(even a state tax collectors office)

=================================

Next time you renew your license tag or buy a fishing license at the Brevard County Tax Collector's office, better take a MasterCard, American Express or Discovery Card. Or a check or cash.

 

DISCOVERY CHANNEL IS ISSUING A CREDIT CARD NOW

 

Not the first time I have seen that

Edited June 15, 2009 by GEORGE

[GEORGE]

The point is...the "GOVERNMENT" can't pay the fee

 

Although they pay...

 

WATER

SEWER

TRASH

PHONE

ELECTRIC

GAS

 

VISA/MC/AMEX/DISCOVER won't process with-out any fee paid by somebody

[Uncle Leo]

The other thing here is that government agencies (ie. state university) are usually excepted from the surcharge requirement because of the fact that they cannot discount the costs of the tuition to absorb the fee...as such, the fee is proscribed in law as being permissible to assess to the payer.

 

Yep.

 

G-ment routinely exempts themselves from many things.

[GEORGE]

You can pay your 1040 TAXES on a credit card...BUT THE IRS IS NOT GOING TO PAY THE FEE

[improper_validation]

What state? It may be illegal due to a state law.

DOUBT IT sorry to say

 

Actually...

 

MAINE POSSESSES A "NO SURCHARGE RULE" FOR CONSUMER PURCHASES

 

"No seller...may impose a surcharge on a cardholder who elects to use a credit card in lieu of payment by cash, check or similar means."

 

Statute: Maine Rev. Stat. Ann. tit. 9-A, § 8-303(2) (See also id. § 8-103 (definitions and rules of construction))

ALSO

The states of Colorado, Maine, Massachusetts and Oklahoma additionally require that the cash discount be clearly and conspicuously disclosed to customers.

 

I recently reported a place and got instant results.

 

http://www.maine.gov/pfr/consumercredit/index.shtml

 

 

I think your missing the key element here... "Third Party"

 

They will hire some "Web Bill Payer, LLC" to process the payment...the "merchant/seller" will not actually be charging you a surcharge...the "third party" who is processing the payment will be.

 

Legally, you will pay "Web Bill Payer, LLC" who will then pay "State/Public/Private University" on your behalf...

 

It's a loop hole... and I personally think they "share" in the convenience fee or have some kind of other underhanded agreement that makes it profitable to use this 3rd party loop hole.

 

My electric company is a large publicly traded fortune 200 company, believe me if this loop hole wasn't legal there would be multi-million dollar class actions...

 

Exactly the case, the third party tuition management was charging the fee.

 

It stopped.

 

I'll PM you the letters that stopped it in under a week.

 

EDIT- I have proof they profited off it aswell.

Edited June 25, 2009 by wcnghj

[improper_validation]

"FACTS" is the payment company/processor. FACTS was charging a fee, the state department who regulates this had a problem with it(it violated state law) so they did something about it.

 

[GEORGE]

"FACTS" is the payment company/processor. FACTS was charging a fee, the state department who regulates this had a problem with it(it violated state law) so they did something about it.

 

So...starting next AUGUST/SEPTEMBER they will just no longer accept plastic

 

That is what some businesses have done when they got caught having a minimum charge amount or charging a fee to take the card

Edited June 25, 2009 by GEORGE

[improper_validation]

"FACTS" is the payment company/processor. FACTS was charging a fee, the state department who regulates this had a problem with it(it violated state law) so they did something about it.

 

So...starting next AUGUST/SEPTEMBER they will just no longer accept plastic

 

That is what some businesses have done when they got caught having a minimum charge amount or charging a fee to take the card

 

Nah, they'll still accept it.

 

They have accepted it the last 10 years without a fee and they switched to FACTS just this year. They were saying the fee was a valuable option for them.

Edited June 25, 2009 by wcnghj