Surprise Surcharge for Using Credit Card

[Callandra]

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@Anonymous wrote:

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@MASTERNC wrote:

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@OmarGB9 wrote:
Maybe something new Square imposed. As far as I know the 2.75% was always the fee per transaction but it was charged to the merchant, not the customer. Perhaps they're passing the fee onto the consumer now?

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Not that I can see.  Square's website still indicates the merchant is charged the fee.  Again, the merchant can surcharge to recover its cost, but it must be clearly disclosed at the point of sale.  I have a feeling the merchant in question was not aware of this.

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What i would do, is go back to that merchant and ask if they're aware...then take the appropiate action from there.

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Agreed. You should ALWAYS try to work it out with the Merchant first. They may or may not even realize what happened or it's possible you missed a sign saying there would be a surcharge. 

As someone who works for an online business, please note that every time you issue a dispute with your bank, the merchant gets charged a chargeback fee (ours range from $25-45, we have multiple Merchants). I'm sure the merchant would rather give you 25 cents back then have to get hit with that chargeback fee. (Chargeback fees are what raises prices as merchants have to account for that sort of thing and in the end, it affects all consumers). 

[MASTERNC]

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@Callandra wrote:

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@Anonymous wrote:

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@MASTERNC wrote:

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@OmarGB9 wrote:
Maybe something new Square imposed. As far as I know the 2.75% was always the fee per transaction but it was charged to the merchant, not the customer. Perhaps they're passing the fee onto the consumer now?

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Not that I can see.  Square's website still indicates the merchant is charged the fee.  Again, the merchant can surcharge to recover its cost, but it must be clearly disclosed at the point of sale.  I have a feeling the merchant in question was not aware of this.

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What i would do, is go back to that merchant and ask if they're aware...then take the appropiate action from there.

---

Agreed. You should ALWAYS try to work it out with the Merchant first. They may or may not even realize what happened or it's possible you missed a sign saying there would be a surcharge. 

As someone who works for an online business, please note that every time you issue a dispute with your bank, the merchant gets charged a chargeback fee (ours range from $25-45, we have multiple Merchants). I'm sure the merchant would rather give you 25 cents back then have to get hit with that chargeback fee. (Chargeback fees are what raises prices as merchants have to account for that sort of thing and in the end, it affects all consumers). 

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I am definitely aware of the chargeback fee, which is why I probably won't even go that direction.  I did submit a report to Mastercard, though I doubt they can do anything since it is through Square.  In the meantime, I will see if I get a response on Twitter (if so, I will guide them to the regulations on surcharging).

[yfan]

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@onstar wrote:

They can still "surchage" in California by offering a cash discount. Instead of making an item $9, the vendor can list the item at $9.50, then give a 50 cent cash discount per item. This is also true in 8 other states. Only in NY, you cannot surcharge or give a cash discount.

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Good point. It's time to change our laws!