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Do not recall if this is proper or not
In the outback area I live in effective to September 1, 2022 the merchants noticed that they charge 3.9% on every debit/credit transaction added to the cost of goods. The local merchants are: local bank, hair cutter, meat market, fueling station and now the local Ford dealer to name but a few.
Note, they say cash or paper check is "welcome".
Other merchants out of town also have added a floor (minimum charge) amount or it is cash only.
What say?
Is this allowed for in the Visa, Master Card, Discover or American Express Networks operating Terms & Conditions? Cannot remember.
Note, if it is not allowed, I will go around and collect business names and addresses and turn them all in.
Thank you @FireMedic1 always good to know!
"U.S. merchants won the right to start charging fees on credit card payments on Jan. 27, 2013. This came after a who wanted to charge fees to compensate for increasing credit card processing fees. It's also important to note that we are only talking about fees on credit card transactions. These fees do not apply to transactions using debit cards. Even if those cards are backed by a credit card network like Visa or Mastercard."
https://thepointsguy.com/guide/merchant-charge-fee-pay-by-credit-card/
Happened to me last week to replace some fascia that tore off during the hurricane. 3.5%.
@Anonymous wrote:Do not recall if this is proper or not
In the outback area I live in effective to September 1, 2022 the merchants noticed that they charge 3.9% on every debit/credit transaction added to the cost of goods. The local merchants are: local bank, hair cutter, meat market, fueling station and now the local Ford dealer to name but a few.
Note, they say cash or paper check is "welcome".
Other merchants out of town also have added a floor (minimum charge) amount or it is cash only.
What say?
Is this allowed for in the Visa, Master Card, Discover or American Express Networks operating Terms & Conditions? Cannot remember.
Note, if it is not allowed, I will go around and collect business names and addresses and turn them all in.
Thank you @FireMedic1 always good to know!
In my opinion, its legality varies from state to state, and in some cases may turn on how it is worded.
It is my understanding that this can be done in most states at this point with just a few prohibiting this. I believe it can be done as a surcharge on paying with a cedit card, a convenience fee or getting a discount for cash..... depending on how the account is setup & the terminolgy used. It must be appropriately posted at the location so customers are made aware of this prior to their purchase or dining in a restaurant.
In addition, Fire Medic is correct, I believe this can be done on credit cards and not on debit cards.
@FishingGuy wrote:It is my understanding that this can be done in most states at this point with just a few prohibiting this. I believe it can be done as a surcharge on paying with a cedit card, a convenience fee or getting a discount for cash..... depending on how the account is setup & the terminolgy used. It must be appropriately posted at the location so customers are made aware of this prior to their purchase or dining in a restaurant.
In addition, Fire Medic is correct, I believe this can be done on credit cards and not on debit cards.
@FishingGuyThat was a snippet from the article link I posted. I take no credit.
I got a (mild) surprise a few weeks ago when I went to my local Krystal (hey, don't judge) and the amount I was told at the speaker didn't quite match the amount on my receipt after I paid.
I went back a week later, and this time I noticed a very small sign at the bottom of the menu board explaining that a surcharge would be added to all orders paid with a credit card. IIRC it was ~4%, so it basically canceled out the rewards on the transaction.
So far that's the only spot I've come across a surcharge, but it won't surprise me to eventually come across more (especially smaller businesses).
Well, I did expend some shoe leather and went to the local Ford Dealer. Told him the younger folks were not big into cash and the old paper checks! Said I would believe the old folks (we have many) would embrace the paper checks, but his future buyers are not going too! He agreed and said they can just pony up the 3.9% that Visa/Mastercard were charging all the merchants. Reminded him about bad checks and he said nothing!!!
Did not move his thinking one bit! I did remind him unlike many of the small businesses, his bills were large! The results, he was ticked off at me for the conversation!
In fact, I believe one of the Forum Posters mentioned they were running into the surcharge thing in the notheastern part of the United States (outside major areas). Just wondering what the hey...?
Dislike paper checks and cash, I dribble it away!
In California, a retailer can not charge a surcharge to consumers who pay with credit card. However, they can give a discount for cash. So, when you see the 'Credit' price and the 'Cash' price on a gas station sign, in theory anyway, the credit price is the actual price per gallon and the cash price is the discounted price.
Cal. Civil Code §1748.1
(a) No retailer in any sales, service, or lease transaction with a consumer may impose a surcharge on a cardholder who elects to use a credit card in lieu of payment by cash, check, or similar means. A retailer may, however, offer discounts for the purpose of inducing payment by cash, check, or other means not involving the use of a credit card, provided that the discount is offered to all prospective buyers.
@ptatohed wrote:In California, a retailer can not charge a surcharge to consumers who pay with credit card. However, they can give a discount for cash. So, when you see the 'Credit' price and the 'Cash' price on a gas station sign, in theory anyway, the credit price is the actual price per gallon and the cash price is the discounted price.
Cal. Civil Code §1748.1
(a) No retailer in any sales, service, or lease transaction with a consumer may impose a surcharge on a cardholder who elects to use a credit card in lieu of payment by cash, check, or similar means. A retailer may, however, offer discounts for the purpose of inducing payment by cash, check, or other means not involving the use of a credit card, provided that the discount is offered to all prospective buyers.
California's solution is make EVERYTHING more expensive!