3 ms·

>Merchants can pass the CC surcharge through Unless things have changed in the last 20ish years, if you accept credit cards you’re not allowed to charge differ

by dhosek 4y ago

>Merchants can pass the CC surcharge through Unless things have changed in the last 20ish years, if you accept credit cards you’re not allowed to charge different prices for CC vs non-CC payments (although there are apparently some carve-outs for gas stations).

aidenn0 4y ago
IIRC it's only for non-cash payments that you can't charge a different amount for; cash discounts are allowed across the board.
- frant-hartm 4y ago
  In the EU (whole EEA actually) the merchants are not allowed to charge a different amount for cash and personal cards (debit or credit cards). They can charge the transaction fee they pay for business (company) cards and they need to inform the consumer in advance.
  - aidenn0 4y ago
    In the US, there are legally few limitations as long as you inform the customer. However all of the major credit cards have "most favored nation" clauses in their service agreements that prohibit charging any less for competing payment systems. As a side note, many government services aren't allowed to eat the transaction cost, so they actually do pass the cost to the consumer (e.g. when I pay my annual car registration, an ACH (electronic check) payment is the same as paying cash in person, but a credit card has an additional fee tacked on.
kelnos 4y ago
Things indeed changed, in most US states, in 2013[0]. [0] https://smartpay.gsa.gov/content/surcharges https://smartpay.gsa.gov/content/surcharges
reidjs 4y ago
This is not enforced, though. Almost every store near me charges a surcharge on small purchases (<$10) made with CC.
squeaky-clean 4y ago
You're not allowed to charge more for using a CC, but you are allowed to offer a 5% "cash discount". Extremely common in New York City.
softveda 4y ago
That is just a merchant contract isn't it? In Australia government passed law that disallows such clause in contract and it is very common here to pay a credit card fee (the fee can only recoup the extra cost for CC transactions and not be a profit in in itself).
__derek__ 4y ago
That changed with Dodd-Frank.[1] [1]: https://www.ftc.gov/business-guidance/resources/new-rules-electronic-payments-lower-costs-retailers https://www.ftc.gov/business-guidance/resources/new-rules-el...
deleted 4y ago
[deleted]
mbreese 4y ago
It’s now allowed almost universally. I believe there are a couple of states that still don’t allow it, but for the most part, you can add a credit surcharge now. This was part of a massive lawsuit by retailers against the CC processors that was eventually settled. Here are the Visa rules for it. https://usa.visa.com/support/small-business/regulations-fees.html https://usa.visa.com/support/small-business/regulations-fees... Basically you can add a small surcharge amount, but nothing more than the actual cost of the transaction.
happyopossum 4y ago
> Unless things have changed in the last 20ish years They absolutely have.
ravel-bar-foo 4y ago
There was a relevant Supreme Court decision in 2017. Credit card surcharges are considered part of the first-amendment rights of the merchant (although they seem to be regulated on a state-by-state basis). No, I don't think the first amendment justification makes sense either.

by dhosek 4y ago

aidenn0 4y ago

IIRC it's only for non-cash payments that you can't charge a different amount for; cash discounts are allowed across the board.

frant-hartm 4y ago
In the EU (whole EEA actually) the merchants are not allowed to charge a different amount for cash and personal cards (debit or credit cards). They can charge the transaction fee they pay for business (company) cards and they need to inform the consumer in advance.
- aidenn0 4y ago
  In the US, there are legally few limitations as long as you inform the customer. However all of the major credit cards have "most favored nation" clauses in their service agreements that prohibit charging any less for competing payment systems. As a side note, many government services aren't allowed to eat the transaction cost, so they actually do pass the cost to the consumer (e.g. when I pay my annual car registration, an ACH (electronic check) payment is the same as paying cash in person, but a credit card has an additional fee tacked on.

kelnos 4y ago

Things indeed changed, in most US states, in 2013[0]. [0] https://smartpay.gsa.gov/content/surcharges https://smartpay.gsa.gov/content/surcharges

reidjs 4y ago

This is not enforced, though. Almost every store near me charges a surcharge on small purchases (<$10) made with CC.

squeaky-clean 4y ago

You're not allowed to charge more for using a CC, but you are allowed to offer a 5% "cash discount". Extremely common in New York City.

softveda 4y ago

That is just a merchant contract isn't it? In Australia government passed law that disallows such clause in contract and it is very common here to pay a credit card fee (the fee can only recoup the extra cost for CC transactions and not be a profit in in itself).

__derek__ 4y ago

That changed with Dodd-Frank.[1] [1]: https://www.ftc.gov/business-guidance/resources/new-rules-electronic-payments-lower-costs-retailers https://www.ftc.gov/business-guidance/resources/new-rules-el...

deleted 4y ago

[deleted]

mbreese 4y ago

It’s now allowed almost universally. I believe there are a couple of states that still don’t allow it, but for the most part, you can add a credit surcharge now. This was part of a massive lawsuit by retailers against the CC processors that was eventually settled. Here are the Visa rules for it. https://usa.visa.com/support/small-business/regulations-fees.html https://usa.visa.com/support/small-business/regulations-fees... Basically you can add a small surcharge amount, but nothing more than the actual cost of the transaction.

happyopossum 4y ago

> Unless things have changed in the last 20ish years They absolutely have.

ravel-bar-foo 4y ago

There was a relevant Supreme Court decision in 2017. Credit card surcharges are considered part of the first-amendment rights of the merchant (although they seem to be regulated on a state-by-state basis). No, I don't think the first amendment justification makes sense either.