Convenience Fee
Feb 25, 2010 | 5:49 am
#1
Original Poster
Join Date: Jan 2010
Posts: 70
Convenience Fee
I am still looking to put more spend on my cards. A couple of my local utilities (gas, cable, etc.) allow credit card charges through a third party, but charge a “convenience fee”. I was under the impression this is a violation of the cards T & C to the merchant. Anyone heard of this before and is there any recourse? The fee ranges from $1 to $2.95 or so. Not much, but doesn’t make sense when you look at the $/mile.
Feb 25, 2010 | 6:00 am
#2
Flyertalk Posting Legend Moderator: Credit Card Programs, American Express, Capital One, Chase, Citi, Diners Club, Eco Travel, Signatures
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Yes, it's common when paying government agencies or regulated businesses such as utilties. Our electric utility adds a convenience fee, our cable company does not. You'll often encounter percentage-based fees if you investigate paying income, property or similar taxes.
Feb 25, 2010 | 6:09 am
#3
Join Date: Jan 2005
Programs: UA GOLD MM,WN CP A+list, HH Gold,MR LT Titanium
Posts: 2,184
I am still looking to put more spend on my cards. A couple of my local utilities (gas, cable, etc.) allow credit card charges through a third party, but charge a “convenience fee”. I was under the impression this is a violation of the cards T & C to the merchant. Anyone heard of this before and is there any recourse? The fee ranges from $1 to $2.95 or so. Not much, but doesn’t make sense when you look at the $/mile.
I am not sure how they skirt the T&Cs of the merchant agreement here.My best guess is that it has something to do with using a third party to process.
Feb 25, 2010 | 7:05 am
#4
Flyertalk Posting Legend Moderator: Credit Card Programs, American Express, Capital One, Chase, Citi, Diners Club, Eco Travel, Signatures
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http://usa.visa.com/download/merchan...ance_guide.pdf
Feb 25, 2010 | 11:20 am
#5
FlyerTalk Evangelist
Join Date: Jul 2003
Location: Florida
Posts: 30,343
I wonder if the charge showing up as Utility bill or just a Western Union purchase on the CC statement?
Feb 25, 2010 | 11:26 am
#6
Join Date: Jan 2005
Programs: UA GOLD MM,WN CP A+list, HH Gold,MR LT Titanium
Posts: 2,184
This is an interesting idea about Prepayment. I have never thought of that. FPL is my electricity company and uses Western Union to process CC payment with the fee. Thanks for mentioning it.
I wonder if the charge showing up as Utility bill or just a Western Union purchase on the CC statement?
I wonder if the charge showing up as Utility bill or just a Western Union purchase on the CC statement?
Feb 25, 2010 | 12:13 pm
#7
Flyertalk Posting Legend Moderator: Credit Card Programs, American Express, Capital One, Chase, Citi, Diners Club, Eco Travel, Signatures
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA, IHG & Marriott Platinum; DL & HH Gold
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Charges post as: FLORIDA POWER & LIGHT 800-226-3545 FL
Mastercard or Discover only. No American Express, no VISA.
Overpayments of more than $10 will not be accepted.
http://www.fpl.com/customer/paycard.shtml
Mastercard or Discover only. No American Express, no VISA.
Overpayments of more than $10 will not be accepted.
http://www.fpl.com/customer/paycard.shtml