Credit card surcharge with immediate credit in the wild
Jun 14, 2018, 12:16 am
#16
Join Date: Mar 2011
Location: Window Seat
Programs: National Executive, HHonors Gold, IHG Platinum, Hyatt Visitor
Posts: 2,495
Thinking about it more, I suspect they actually wouldn't remove the surcharge if you give them a debit card. It almost seems easier for them to get their processor to remove debit support altogether from their terminals and route everything over Visa/MC if they're truly paying more for such transactions.
I wonder if they would fee a debit card even if it was run as credit? I don't think the networks allow that...
And to be clear here in Reno and Carson City, NV the Dairy Queens surcharge you .59 ESF for card use. There is no charge then discount... that is only in California due to the laws there. And I have walked out of both locations after ordering and gone elsewhere when learning of this surcharge.
I have a real problem with surcharges in general, but especially one that is clearly more than it costs to process the card. Unless you spent about $20 at Dairy Queen, it isn't costing them .59 to process the card. If I go spend $5 there on a card they pay probably .20 to process the card yet surcharge me .59 and that is simply not right.
Jun 14, 2018, 9:14 am
#17
FlyerTalk Evangelist
Join Date: Jan 2014
Location: San Diego, CA
Programs: GE, Marriott Platinum
Posts: 15,508
I have a real problem with surcharges in general, but especially one that is clearly more than it costs to process the card. Unless you spent about $20 at Dairy Queen, it isn't costing them .59 to process the card. If I go spend $5 there on a card they pay probably .20 to process the card yet surcharge me .59 and that is simply not right.
That said, many merchants do take it overboard and don't follow the rules on the subject (i.e. having surcharging/minimums for debit cards despite not being allowed and charging more than their own cost). The irony is that it should be fairly straightforward to code in the rules at the terminal/POS level now that chip makes it much easier to determine the kind of card being used, but of course, many of the surcharging merchants also can't be bothered to buy anything other than a regular cash register and a standalone terminal.
Jun 15, 2018, 12:13 am
#18
Join Date: Mar 2011
Location: Window Seat
Programs: National Executive, HHonors Gold, IHG Platinum, Hyatt Visitor
Posts: 2,495
I do understand them a little bit considering that card processing in the US in general is higher cost than in some other places.
That said, many merchants do take it overboard and don't follow the rules on the subject (i.e. having surcharging/minimums for debit cards despite not being allowed and charging more than their own cost). The irony is that it should be fairly straightforward to code in the rules at the terminal/POS level now that chip makes it much easier to determine the kind of card being used, but of course, many of the surcharging merchants also can't be bothered to buy anything other than a regular cash register and a standalone terminal.
That said, many merchants do take it overboard and don't follow the rules on the subject (i.e. having surcharging/minimums for debit cards despite not being allowed and charging more than their own cost). The irony is that it should be fairly straightforward to code in the rules at the terminal/POS level now that chip makes it much easier to determine the kind of card being used, but of course, many of the surcharging merchants also can't be bothered to buy anything other than a regular cash register and a standalone terminal.