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Old Dec 10, 2010 | 9:35 pm
  #16  
skynerd
 
Join Date: Jun 2010
Posts: 292
Originally Posted by mia
The large payment security fee appears to simply be a ploy to work around the fact that VISA's rules only permit flat fee convenience charges (with an exception for tax payments).

See this document:

http://usa.visa.com/download/merchan...tions-main.pdf

...and search for rule: 5.2.E

As I read the rule they wouldn't be permitted to charge any fee: The requirement for an alternate payment channel means that Mail/Telephone Order and Electronic Commerce Merchants whose payment channels are exclusively non-face-to-face may not impose a Convenience Fee., but that's probably been discussed elsewhere.
ChargeSmart offers variable fees in step 1 for some vendors, such as Lexus Financial Services ($16.40 for $500, $27.85 for $1000). Maybe establishing a credit card bill payment service like chargesmart might require a specially negotiated merchant contract, or maybe the fact that chargesmart is not the seller who originally contracted with the buyer makes a difference.

Anyhow, I have downloaded and at least glanced at the document you refer to, as it looks like a great reference to have for many other situations. Thank you!
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