Full Version: Paying by credit card - is a surcharge allowed?
Is it legal to charge a surcharge for credit card transactions? Or worded another way, is it ok to put in the fine print that advertised prices are "cash" prices and then charge a percentage on top of that for credit card transactions?
Moving to the correct forum.
QUOTE (BLUEMOON78 @ Apr 23 2009, 04:54 PM) 
Is it legal to charge a surcharge for credit card transactions? Or worded another way, is it ok to put in the fine print that advertised prices are "cash" prices and then charge a percentage on top of that for credit card transactions?
VIOLATION
With the exception of where it is permitted by law (LIKE PAYING YOUR 1040 TAXES)
The FEDERAL GOVERNMENT can't pay the fee...so you pay it
NO MINIMUMS
NO MAXIMUMS
NO SURCHARGES
NO ID
http://www.mastercard.com/us/personal/en/c...violations.html
NO MAXIMUMS
NO SURCHARGES
NO ID
http://www.mastercard.com/us/personal/en/c...violations.html
QUOTE (BLUEMOON78 @ Apr 23 2009, 02:54 PM)
Is it legal to charge a surcharge for credit card transactions? Or worded another way, is it ok to put in the fine print that advertised prices are "cash" prices and then charge a percentage on top of that for credit card transactions?
That's a violation of the credit card rules. But they are allowed to offer a "discount" for cash. It has to be stated that way.
QUOTE (green2408 @ Apr 23 2009, 05:38 PM)
QUOTE (BLUEMOON78 @ Apr 23 2009, 02:54 PM)
Is it legal to charge a surcharge for credit card transactions? Or worded another way, is it ok to put in the fine print that advertised prices are "cash" prices and then charge a percentage on top of that for credit card transactions?
That's a violation of the credit card rules. But they are allowed to offer a "discount" for cash. It has to be stated that way.
A box of cookies $1.97 CASH PRICE
A box of cookies $2.07 CREDIT CARD PRICE
Fine I guess
BUT WHEN IT SAYS 5% ADDITIONAL FEE FOR USING A CREDIT CARD...VIOLATION
I still don't understand what happened to--->TAX DEDUCTABLE COST OF DOING BUSINESS
QUOTE (GEORGE @ Apr 23 2009, 06:59 PM)
I still don't understand what happened to--->TAX DEDUCTABLE COST OF DOING BUSINESS[/b]
Just because it is deductible does not mean they get the entire amount back in their pockets. If one is barely scraping by (as many stores do by virtue of boxes putting a number of mom&pop stores on a teetering edge), merchant fees paid during the year can significantly harm the bottom line.
QUOTE
MC/Visa definitely take action against merchants who do not follow their rules about ID or surcharges. I can name 4 businesses in our area who have gotten a nasty-gram in the past few months. One of the merchants says that he is thinking of not taking credit cards anymore. Another merchant was pissed off and swore a competitor turned him in.
Maybe these stores who are complaining about merchant fees need to find a new card processing company. There sure are a lot of companies that process cards, and the fee structures are different between them (and also negotiable...).
QUOTE (thelowpriceleader @ Apr 24 2009, 06:26 PM)
Maybe these stores who are complaining about merchant fees need to find a new card processing company. There sure are a lot of companies that process cards, and the fee structures are different between them (and also negotiable...).
THE TAX DEDUCTABLE FEE IS WHAT IS GOING TO MAKE or BREAK THE BUSINESS
I would suggest they find a new line of work
QUOTE (BLUEMOON78 @ Apr 23 2009, 05:54 PM)
Is it legal to charge a surcharge for credit card transactions? Or worded another way, is it ok to put in the fine print that advertised prices are "cash" prices and then charge a percentage on top of that for credit card transactions?
Depending on how the "cash discount" is done, it's perfectly legal and acceptable per card policies.
QUOTE (GEORGE @ Apr 23 2009, 07:07 PM)
QUOTE (BLUEMOON78 @ Apr 23 2009, 04:54 PM)
Is it legal to charge a surcharge for credit card transactions? Or worded another way, is it ok to put in the fine print that advertised prices are "cash" prices and then charge a percentage on top of that for credit card transactions?
VIOLATION
Completely prohibited. Immediately call 1-800-VISA-911.
Also easily report merchant violations online:
http://www.mastercard.com/us/personal/en/c...violations.html
Check box #2
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