topic Re: Credit card processing/convenience fees in General Credit Topics

Credit card processing/convenience fees

Anonymous — Sun, 08 May 2016 14:24:32 GMT

So, I live in Texas, and, according to what I've read, it's illegal to charge credit card fees to customers unless you charge everyone the same fee regardless of tender. There are a few exceptions, of course (i.e. Private schools, government, state and local entities, and the like) but my apartment complex charges a different fee for each network (which I have read is also illegal. The fee has to be the same for all credit card networks) and it appears they're not even supposed to be charging a fee for them.

Am I misinterpreting?

http://codes.findlaw.com/tx/finance-code/fin-sect-339-001.html

https://www.cardfellow.com/charging-customers-a-credit-card-convenience-fee-at-check-out/#chargeCustomers

I know that second one is a little lengthy, but I know there are a lot of Texas residents on this forum that this info could benefit.

Re: Credit card processing/convenience fees

sr383 — Sun, 08 May 2016 15:07:28 GMT

I've never heard of that. I've seen merchants that simply don't take AMEX (or no plastic, at all), and some gas stations have tiered pricing, based on whether you pay with credit or debit, but I've never heard of merchants charging different fees for different cards.

Re: Credit card processing/convenience fees

grillandwinemaster — Sun, 08 May 2016 15:31:21 GMT

This fee charging has also been known to happen in California. Especially the gas tiered pricing. Which drives me crazy!

Maybe you can show your apt complex the Texas legislation? One of three things can happen:

1- They will stop charging the fee,

2- They will stop accepting credit cards

3- They will tell you to go to he%&! ☺

Re: Credit card processing/convenience fees

Anonymous — Sun, 08 May 2016 16:27:19 GMT

Idk about tiered pricing but they can tell you a minimum purchase price based on credit or debit

Re: Credit card processing/convenience fees

RonM21 — Mon, 09 May 2016 16:21:44 GMT

I've never thought much about this, but it makes me want to look up my state regulations on it in PA.

Re: Credit card processing/convenience fees

All4One — Mon, 09 May 2016 17:33:38 GMT

I thought that used to be the case and it was changed at the federal level in the last 5(?) years. With the gas tiered pricing they don't charge a "fee" for credit cards, instead they offer a "discount" for cash/debit purchases.

Re: Credit card processing/convenience fees

Anonymous — Mon, 09 May 2016 17:45:07 GMT

Yeah you can do that but you have to mark up all your sticker prices. So it can lead to customers going to a "cheaper" gas station across the street; so that leads many to steer clear of that idea

Re: Credit card processing/convenience fees

takeshi74 — Tue, 10 May 2016 01:28:38 GMT

@Anonymous wrote:
So, I live in Texas, and, according to what I've read, it's illegal to charge credit card fees to customers unless you charge everyone the same fee regardless of tender.

It is. Businesses get around it by offering cash discounts in TX but that doesn't sound relevant to your apartment complex. What they're doing may go against the agreements in place with the payment networks as well.

Not sure that this is a reputable resource but:

http://www.dallasnews.com/investigations/watchdog/20140920-watchdog-its-illegal-to-add-fees-to-credit-and-debit-cards.ece

Re: Credit card processing/convenience fees

Anonymous — Tue, 10 May 2016 01:33:15 GMT

Yeah. Seems like, even if you escalate it, the problem is moot. I thought about going through each of the card networks and telling them.