Originally Posted by
BostonMark
First, Barclay's Bank runs the MasterCard program so I'm assuming you were talking to Barclay's Bank not US Airways people?
Second, credit card merchants absolutely can require a minimum for using a credit card and most do. They can not require a minimum for using a debit card.
Third, restaurants, even in the US can add gratuities to your bill. Some in New York now add 18-20% on parties of 5 or more.
Finally, there often is a foreign exchange surcharge added by the credit card company - not 5% but still a surcharge for the foreign exchange transaction.
Gratuities are not the same as a surcharge for using MC instead of using another form of payment including cash. This is an actual fee for services rendered not a surchage for using MC. You can argue if it's appropriate but if the merchant charges everyone regardless of payment method, it's a payment for services rendered, not a "surcharge" as far as MC is concerned. If you are only charge when paying with MC, that is considered discriminating against MC over other payment methods - not allowed by MC. You can offer discounts if paying by cash but you cannot charge more if paying by MC.
Foreign transaction charges are also different and that is imposed by the bank (acquirer), not the merchant. They're not related. This is also a fee and AFAIK, the banks either charge all card programs they offer or none at all. This is also a fee for services (yes, it's riddiculous which is why there is a settlement between the CCs in a recent lawsuit over foreign transaction fees - I'm getting a few hundred $ back).
I'm not an expert in this space but I do spend quite a bit cos of work so I've stuck my nose in some of their docs more than once. AFAIK, both CC surcharging and minimum spending levels are not permitted by MC. Don't get me wrong. Both are widely practiced but that doesn't make it right (how many people do you know run red lights? park illegally? litter?).
Discriminatory charges are expressedly prohibited under the MC merchant agreement:
9.12.2 Charges to Cardholders
A merchant must not directly or indirectly require any MasterCard cardholder
to pay a surcharge or any part of any merchant discount or any
contemporaneous finance charge in connection with a MasterCard card
transaction. A merchant may provide a discount to its customers for cash
payments. A merchant is permitted to charge a fee (such as a bona fide
commission, postage, expedited service or convenience fees, and the like) if
the fee is imposed on all like transactions regardless of the form of payment
used.
- A surcharge is any fee charged in connection with a MasterCard transaction that is not charged if another payment method is used.
- The merchant discount fee is the fee the merchant pays to its acquirer to acquire transactions.
Minimum charges are also prohibited though this is very commonly practiced:
9.12.3 Minimum/Maximum Transaction Amount Prohibited
A merchant must not require, or post signs indicating that it requires, a
minimum or maximum transaction amount to accept a valid MasterCard card.
Check out
Rules for accepting MasterCard® cards
Merchant complaints here