Sep 21, 2019, 12:42 pm
Last edit by: rasheed
Some key factors of credit surcharging as it applies to the US market only.
-Disclosure and itemization is key. You can still report such issues if there is indeed lack of proper disclosure AND itemization. Itemization is going to be very unlikely unless the terminal is specifically setup to create that line item. Those merchants who just tell you and "add it to the card total" are not compliant. They may not care even with complaints made to Visa/MC/Discover/AmEx.
-Visa's complaint form: https://usa.visa.com/Forms/visa-rules.html Visa does review all complaints and asks the merchant/processor for a response, but you might never hear back from them on the outcome. Sometimes, you will see a minor change at the store. Visa also does covert operations to visit such merchants in certain situations.
-Mastercard's complaint email: [email protected]
-Discover and AmEx as "closed loop" systems require any complaints be done directly as a cardholder under their current merchant dispute options.
-The current surcharge limit in the US is 4%
-Visa's website on the topic: https://usa.visa.com/support/small-b...ions-fees.html
-Visa's diagram on the topic: https://usa.visa.com/dam/VCOM/global...rements-r5.pdf
-Mastercard's website on this topic: https://www.mastercard.us/en-us/merc...rge-rules.html
-Mastercard's document on this topic: https://www.mastercard.us/content/da...arge_Rules.pdf
-Elavon's guidance for merchants to get surcharge allowance: https://website.elavon.com/cbsettlement.html
-Visa and Mastercard allow product-level surcharges (such as only Signature or World/World Elite), but that seems really hard to communicate and implement, so brand-level (all Visa/Mastercard/etc.) is the only kind I have seen so far.
-AmEx does not require fee itemization.
California NO LONGER feels it can go against merchants who add surcharges (even beyond the initial "industries" that were allowed in the court ruling):
Same also applies in Florida and Texas.
WorldPay presentation: https://nacm.org/pdfs/webinars/Credi...Fees-82218.pdf
Surging credit surcharges in the US (2019 - 2023)?
Sep 7, 2021, 4:00 pm
#76
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I only see surcharges at Mom & Pop places, and I have no problem using cash there - even at my favorite liquor store, where 4 6-packs of microbrew costs just under $40.
Oct 28, 2021, 10:43 am
#77
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Just had lunch at a restaurant touting their "4% cash discount" which would be effectively a 4% credit card surcharge. I'm writing to ask if that's "normal" or, as it strikes me, rather steep? I used a card with 3% back at restaurants, so lost 20 cents net today.
Yesterday, I was at a bakery/cafe with $10 minimum for any card, debit or credit.
Yesterday, I was at a bakery/cafe with $10 minimum for any card, debit or credit.
Oct 28, 2021, 3:54 pm
#78
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Just had lunch at a restaurant touting their "4% cash discount" which would be effectively a 4% credit card surcharge. I'm writing to ask if that's "normal" or, as it strikes me, rather steep? I used a card with 3% back at restaurants, so lost 20 cents net today.
Yesterday, I was at a bakery/cafe with $10 minimum for any card, debit or credit.
Yesterday, I was at a bakery/cafe with $10 minimum for any card, debit or credit.
Oct 28, 2021, 6:41 pm
#79
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Oct 29, 2021, 2:57 am
#81
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I wonder if they may be using the pandemic as justification. I'm not sure there are many situations in general that would cause their processing costs to double, since in theory they're only allowed to charge what it actually costs them and all.
(Of course, the networks don't seem to fully enforce the surcharge rules, either. For instance, lots of places surcharge even for debit cards.)
(Of course, the networks don't seem to fully enforce the surcharge rules, either. For instance, lots of places surcharge even for debit cards.)
Oct 29, 2021, 6:27 am
#82
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Oct 29, 2021, 7:37 am
#83
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My point in asking would be whether the processing "loss" is really 4% or whether they're doing a "grab" on this?
Oct 29, 2021, 4:47 pm
#84
Moderator: Manufactured Spending
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Just had lunch at a restaurant touting their "4% cash discount" which would be effectively a 4% credit card surcharge. I'm writing to ask if that's "normal" or, as it strikes me, rather steep? I used a card with 3% back at restaurants, so lost 20 cents net today.
Unlike card surcharges, which have to follow certain rules established by the card networks, cash discounts can be for any amount. I suppose if the discount is more than about 3%, then it is to the restaurant's benefit that you pay by card, but I have a feeling that they just choose some arbitrary amount without doing much math.
I always compare the discount/surcharge to my rewards for that transaction and then decide accordingly, unless the amount is small or I don't have enough cash, in which case I just absorb the difference.
Oct 29, 2021, 5:19 pm
#85
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I don't understand why places universally don't adopt cash discount language since having a surcharge that's worded as such could open them up to liabilities.
Oct 29, 2021, 5:34 pm
#86
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Perhaps it's to avoid the impression that they're trying to evade taxes? Surcharging at least adds plausible deniability ("Visa and Mastercard are expensive and are why I have to charge extra"), but then again, there are supposedly rules that need to be followed for that.
Oct 29, 2021, 6:26 pm
#87
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I've never heard of a single business in the US facing liabilities for implementing a surcharge. At most, they get a letter from their acquirer saying someone complained, and they stop doing it.
Oct 30, 2021, 6:20 am
#88
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Not that it would stop them or make much of a difference, but is there any language about whether businesses can Implement minimum transaction amounts?
Oct 30, 2021, 9:02 am
#89
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Originally Posted by FTC
A PCN cannot stop you from setting a minimum dollar amount for accepting credit cards for payment as long as the minimum is the same for all credit card issuers and PCNs, and isn't more than $10.
What's new about that? PCNs sometimes prohibited merchants from refusing to accept a credit card as payment if the customer's purchase didn't exceed a certain amount. For example, if you accepted credit cards at all, the PCNs or banks might have said you had to accept a credit card for even the most minimal purchases.
What's new about that? PCNs sometimes prohibited merchants from refusing to accept a credit card as payment if the customer's purchase didn't exceed a certain amount. For example, if you accepted credit cards at all, the PCNs or banks might have said you had to accept a credit card for even the most minimal purchases.
Oct 30, 2021, 9:58 am
#90
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Thanks! In Slovakia I ran across a souvenir shop with a 50 (fifty) Euro minimum. The clerk refused a banknote as "defaced" so I put it back in my wallet and walked out; a nearby shopkeeper, who didn't take any credit cards, was fine with it.