Credit Card Companies upcharging
Around here I've never had an service charge. Instead some just won't accept credit or debit cards for under either $5 or $10. The only times I've had it happen are gas station convenience stores.
Equal rights for others does not mean fewer rights for you. It's not pie.
"I prefer someone who burns the flag and then wraps themselves up in the Constitution over someone who burns the Constitution and then wraps themselves up in the flag." -Molly Ivins
Never try to teach a pig to sing. It's a waste of your time and it really annoys the pig.
"I prefer someone who burns the flag and then wraps themselves up in the Constitution over someone who burns the Constitution and then wraps themselves up in the flag." -Molly Ivins
Never try to teach a pig to sing. It's a waste of your time and it really annoys the pig.
I have made a list recently and I have been asked to pay an additional fee at 5 different businesses. I've even started asking the business, "Is this even legal to charge me extra?" they all seem to say the same thing. "It's a common practice." Which it really does seems to be common in my area. But... is it legal?
Yeah, that's not really an answer to your question. It's a common practice for people go 70 mph in 60 mph zones, but that doesn't make it legal
It is possible the laws vary by state. Our former Attorney General was aggressive about a lot of the consumer issues relating to credit cards, gift cards, etc. Maybe that's why I see minimum purchases and no fees.
BTW, it taught me to always have a stash of cash with me when going on those gas station jobs.
Edited 1 time(s). Last edit at 12/09/2011 08:40PM by LisaSTL.
It is possible the laws vary by state. Our former Attorney General was aggressive about a lot of the consumer issues relating to credit cards, gift cards, etc. Maybe that's why I see minimum purchases and no fees.
BTW, it taught me to always have a stash of cash with me when going on those gas station jobs.
Equal rights for others does not mean fewer rights for you. It's not pie.
"I prefer someone who burns the flag and then wraps themselves up in the Constitution over someone who burns the Constitution and then wraps themselves up in the flag." -Molly Ivins
Never try to teach a pig to sing. It's a waste of your time and it really annoys the pig.
"I prefer someone who burns the flag and then wraps themselves up in the Constitution over someone who burns the Constitution and then wraps themselves up in the flag." -Molly Ivins
Never try to teach a pig to sing. It's a waste of your time and it really annoys the pig.
Edited 1 time(s). Last edit at 12/09/2011 08:40PM by LisaSTL.
I figure there is some special dispensation in my area for gas stations. They are allowed to charge less per gallon if you pay cash than if you use a credit card. And some small stores here will not accept a credit card for a purchase of less than $5. I suspect the small stores are unlikely to have special dispensation from anyone, but the cash/credit prices here for gas are so blatantly advertised that I suspect it is legal.
At one time you could negotiate the price of an item based on whether you were paying by cash, personal check or credit card. My understanding is that the contracts with the credit card companies forbid this practice now.
At one time you could negotiate the price of an item based on whether you were paying by cash, personal check or credit card. My understanding is that the contracts with the credit card companies forbid this practice now.
I went into a print shop, a few days ago, near my home because I was out of ink. They made 3.00 worth of copies. I handed them my debit card and they told me it was 75 cents extra to use my debit. If that was interest on a 3.00 loan it would be considered loan sharking. When I have accepted the charge it was called a "tip" on the receipt.
That's highway robbery as far as I'm concerned. And their cost of doing business. Why don't you contact your bank or check the website for the Attorney General in your state. At least then you'll know if it's legal and be prepared in the future.
Equal rights for others does not mean fewer rights for you. It's not pie.
"I prefer someone who burns the flag and then wraps themselves up in the Constitution over someone who burns the Constitution and then wraps themselves up in the flag." -Molly Ivins
Never try to teach a pig to sing. It's a waste of your time and it really annoys the pig.
"I prefer someone who burns the flag and then wraps themselves up in the Constitution over someone who burns the Constitution and then wraps themselves up in the flag." -Molly Ivins
Never try to teach a pig to sing. It's a waste of your time and it really annoys the pig.
Actually, I just thought of that a little while ago about checking with the attorney generals office.When I heard about it a few years back they said to contact the card company and they could loose their merchant services and/or be fined a hefty fine. I wish I could remember if it was a local news report or if it was something like a 20/20 report. It just feels wrong regardless. I had a merchant account years ago and the fees are a price you pay for the increase in sales. The fees are steep but overall I still made increases in the overall bottom line and that's the whole point.
average charge in us before Obama passed the consumer protection act was 44 cents per transaction... now it is limited to 22 cents that banks can charge... which has been the case in europe for some time...
at sams club the price for each transaction last i checked for their account service is 1.5% plus 20 cents a transaction... i dont know about a yearly or monthly fee...
you would think people would just use something differnt like an Ipad to process transactions but that would be just too hard... and they would have to enter the data in... which most do with the swipes anyway...
in my area pilot is the only place that charges extra for credit... the rest dont charge any... im sure it effects the bottom line... but according to the newspapers most of the stations around her make most of their profits on food...
cash though is great to have on hand... especially when doing routes...
at sams club the price for each transaction last i checked for their account service is 1.5% plus 20 cents a transaction... i dont know about a yearly or monthly fee...
you would think people would just use something differnt like an Ipad to process transactions but that would be just too hard... and they would have to enter the data in... which most do with the swipes anyway...
in my area pilot is the only place that charges extra for credit... the rest dont charge any... im sure it effects the bottom line... but according to the newspapers most of the stations around her make most of their profits on food...
cash though is great to have on hand... especially when doing routes...
shopping north west PA and south west ny
to put something down as a tip that is not a tip im assuming is fraud...
shopping north west PA and south west ny
It is legal.
Merchants hadn't done it in the past because they would be penalized by the merchant processor (m/c, visa etc.) for doing it as it would prompt people to pay cash instead of use the card.
Recently however, there has been a new law passed that allows businesses to pass on that charge to the consumer without being penalized by M/C, Visa etc.
So yes, it has always been legal, and now it is becoming more widespread due to the lack of penalization to the business.
Merchants hadn't done it in the past because they would be penalized by the merchant processor (m/c, visa etc.) for doing it as it would prompt people to pay cash instead of use the card.
Recently however, there has been a new law passed that allows businesses to pass on that charge to the consumer without being penalized by M/C, Visa etc.
So yes, it has always been legal, and now it is becoming more widespread due to the lack of penalization to the business.
There is a forum on this over at myfico.com regarding gas companies offering a cash discount for paying with cash or charging an extra fee for using a cc. The forum has a link to the current laws.
I don't think it is legal for the merchants to add a surcharge to the consumer for using a cc.
However, I think it is legal for them to offer a cash discount.
Not sure about the debit card fees - if merchants can add a surcharge for the debit card.
I don't think it is legal for the merchants to add a surcharge to the consumer for using a cc.
However, I think it is legal for them to offer a cash discount.
Not sure about the debit card fees - if merchants can add a surcharge for the debit card.
This is something we need to bring up with the MSCs. $1 refund on gas is less than 1/3 of a gallon.
Not sure about you all but I can't stop my pump that fast.
Not sure about you all but I can't stop my pump that fast.
~~*~~*~~*~~ kal ~~*~~*~~*~~
Everyone has a photographic memory. Some just forget to load the film.
Everyone has a photographic memory. Some just forget to load the film.
Ok, everyone... I got the answer from the attorney generals office that then transfered me to the State Law Library.
In about 8 states it IS illegal (Texas, my home state, being one that it is illegal) but in my state.. Arizona... dad-blamit.. it's legal! It really stinks that Azizona can get away with it, but they can.
IJDK- posted to go to myfico.com and I did see the states listed that it's illegal to upcharge in. CA, KS, CO, TX ...(Sorry, that's all I can remember).
It amazes me that what's legal in one state can be illegal in another. Well, mystery solved.Thanks everyone.
In about 8 states it IS illegal (Texas, my home state, being one that it is illegal) but in my state.. Arizona... dad-blamit.. it's legal! It really stinks that Azizona can get away with it, but they can.
IJDK- posted to go to myfico.com and I did see the states listed that it's illegal to upcharge in. CA, KS, CO, TX ...(Sorry, that's all I can remember).
It amazes me that what's legal in one state can be illegal in another. Well, mystery solved.Thanks everyone.
State's rights. This is just one of many differences. In Missouri my friends have to wear motorcycle helmets, they cross the bridge into Illinois and take off their helmets where they then have to turn on their lights during the day. Here I can buy any type of alcohol I want at the grocery store and we even have liquor warehouse type stores. Go to another state and you have to visit a state run store. Yes it would certainly be easier to have laws be more consistent, especially those involving consumer protection.
Equal rights for others does not mean fewer rights for you. It's not pie.
"I prefer someone who burns the flag and then wraps themselves up in the Constitution over someone who burns the Constitution and then wraps themselves up in the flag." -Molly Ivins
Never try to teach a pig to sing. It's a waste of your time and it really annoys the pig.
"I prefer someone who burns the flag and then wraps themselves up in the Constitution over someone who burns the Constitution and then wraps themselves up in the flag." -Molly Ivins
Never try to teach a pig to sing. It's a waste of your time and it really annoys the pig.
it all comes from our history... for a time there were different counties ruling different parts of this land... the north east was england (with the exception of NYC which was first a dutch settlement) south was spain, south west was france...
gave rise to differnt culture, beliefs, and therefore laws... i imagine its quite a headache for a lot of people... but it just means that there are jobs for them to do... like figuring out the different laws in the different states-lawyers, tax accountants, insurance brokers, medical coders, and now IT people
i cant imagine how many people would be out of work if we had a flat tax code and just federal laws...
its a lovely bunch of coconuts... but in the end it forces people to make decisions for the greater good, to compromise, accept others who are different, and to respect state/regional identity...
gave rise to differnt culture, beliefs, and therefore laws... i imagine its quite a headache for a lot of people... but it just means that there are jobs for them to do... like figuring out the different laws in the different states-lawyers, tax accountants, insurance brokers, medical coders, and now IT people
i cant imagine how many people would be out of work if we had a flat tax code and just federal laws...
its a lovely bunch of coconuts... but in the end it forces people to make decisions for the greater good, to compromise, accept others who are different, and to respect state/regional identity...
shopping north west PA and south west ny
Well... here's an update... I talked to my bank about what the law library said. The bank President was nearby and came and joined the conversation. She said that I was given bad info because the merchant services clearly states that you can't pass on your fees to the customer. It violates fair trade..blah blah..blah. She said she is going to get the printed contractual details and will give them to me after the holidays. She said that she recently spoke about this subject with other bankers.
Hummm.. I guess the verdit is still out. I can't wait to see what she gives me. She said a business owner can up his price for his merchandise to cover his expenses, ie, card fees but he can't pass on his fees directly to the customer.
Once I see something in writing, I'll let you know. So far, everything has been more opinions than facts.
Hummm.. I guess the verdit is still out. I can't wait to see what she gives me. She said a business owner can up his price for his merchandise to cover his expenses, ie, card fees but he can't pass on his fees directly to the customer.
Once I see something in writing, I'll let you know. So far, everything has been more opinions than facts.
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