What stores are instituting the credit card surcharge?

[Lewisc]

Surcharges are supposed to be illegal since the charging gas became so big. Giving a discount for cash is the way they are getting round it. Having a set minimum to use a card is also illegal

No longer true

 

[hipchickie]

Surcharges are supposed to be illegal since the charging gas became so big. Giving a discount for cash is the way they are getting round it. Having a set minimum to use a card is also illegal

afaik, not illegal, but usually against the terms you agree to as a business accepting credit cards

 

[Planogirl]

I see that the credit card companies fought this but had to change to a lawsuit. I wonder who sued?

 

[smcabee]

I also read on msnbc or CNN that visa and mc have an all or nothing system where if you have a store in a state where this is illegal they can't charge it in another store in a legal state. That won't help much for the mom and pop or smaller stores but chain stores with many locations in various states won't be Able to charge it even if they wanted to.

 

[Anjelica]

"Visa and MasterCard have rules that require retailers to handle credit cards the same way in all of their stores across the country. That means a chain with stores in any of the 10 states where a surcharge is banned would not be able to have a surcharge at any of its stores.

The National Retail Federation points out that under terms of the settlement, a merchant who adds a surcharge to purchases on a Visa or MasterCard would have to do the same with American Express cards. But AMEX prohibits surcharge fees. So a merchant who accepts American Express as well as Visa/MasterCard would not be able to surcharge any of those cards."

 

[tink_n_pooh]

I don't think you will see big chains charging the surcharges. Smaller indepedently owned company, my guess will be especially service companies- like landscapers, contractors, septic pumping, HVAC, plumbers, mechanics, repairs, etc. Those are the types of companies that are hardest hit by the 3% that the credit card processing company takes. There is little profit margin already and prices must stay low to be competitive... then that 3% is taken away too.

 

[vacationer1954]

Keep in mind that many national chains operate as franchises: The rules concerning consistency of application of surcharges will almost surely be applied per legal entity.

 

[MrBean]

I know most gas stations charge more for credit. I am not aware of any stores doing so as of yet.

Don't know of any in MD that do this, but I have noticed the practice while driving through other states.

If anything, they should display the higher price on the signage and give cash transactions a "discount"

 

[dis-happy]

Amazon will "definitely not" be adding any surcharges.

 

[mrspaha]

Since I try to use cash rewards credit cards whenever I can (obviously to earn rewards), I looked into using them to set up autopay on my utility bills a few years ago. On both the electric company and gas company, there was an additional fee for using a credit card. So for those I set up autopay from my checking account. My internet/cable (Comcast) and cell phone, I pay with credit cards to get the rewards. I wonder how they were able to justify this prior to this new legislation...

Like many others on the disboards, I shop at Aldis, and as you know, they don't accept credit cards--one of the ways they keep prices low.

 

[MomToOne]

Since I try to use cash rewards credit cards whenever I can (obviously to earn rewards), I looked into using them to set up autopay on my utility bills a few years ago. On both the electric company and gas company, there was an additional fee for using a credit card. So for those I set up autopay from my checking account. My internet/cable (Comcast) and cell phone, I pay with credit cards to get the rewards. I wonder how they were able to justify this prior to this new legislation...

The ability to generally charge a surcharge isn't due to new legislation, it is due to a lawsuit brought by merchants against the credit card companies. The credit card company agreements previously stated merchants could not charge surcharges for credit card use (although giving a discount for cash was fine, that's how gas stations got around it). That has now been thrown out by the courts.

In states such as CA that have legislation banning surcharges (nothing new, these states have had this legislation for awhile), that is still in place. But in CA I know there specific exemptions in the law for utility companies and government agencies, they are allowed to tack on a surcharge.

 

[maxiesmom]

I also read on msnbc or CNN that visa and mc have an all or nothing system where if you have a store in a state where this is illegal they can't charge it in another store in a legal state. That won't help much for the mom and pop or smaller stores but chain stores with many locations in various states won't be Able to charge it even if they wanted to.

Yep. That is why I'm not too impressed by Walmar saying they won't charge the fee. They can't!

 

[LilyWDW]

And I see it hurting the smaller stores even more.

People are not going to like being forced into paying a surcharge to use their credit cards. Since the smaller stores MUST announce that this change will be added, their potential shoppers will know ahead of time. This may just drive more people to the chain stores that can't or won't add on a surcharge. Since chain stores have already cut into profits for the smaller stores historically, this will just reduce the customer base that might visit these smaller stores.

And when I say "forced into paying a surcharge" I know that it's currently already built into the price of items. However, it being wrapped up in a single price is different then it being added separate at the point of sale. People can ignore the first... they can't ignore second as it is in their face.

 

[vacationer1954]

And when I say "forced into paying a surcharge" I know that it's currently already built into the price of items. However, it being wrapped up in a single price is different then it being added separate at the point of sale. People can ignore the first... they can't ignore second as it is in their face.

There is no requirement to have a separate surcharge. The retailer can continue as they always have with no change.

 

[LilyWDW]

There is no requirement to have a separate surcharge. The retailer can continue as they always have with no change.

I know. However, this is about an added surcharge on your purchase for using a credit card. The store must reveal this to the customer with a notice on the door and at the register. My comment was about that. The store does not HAVE to do it, but can choose to do so.

 

[JB2K]

It's been sporadically-reported that none of the big, well-known chains will be doing this (if they do anything, my suspicion is that shelf prices will simply increase to offset the charge).

"Mom and pop" stores, OTOH, have a case to add the surcharge, since selling goods is their bread-and-butter...

 

[cpdrn7]

I work in retail...for the past few years, the fees charged to retailers have increased tremendously.....it's a cost of doing business with credit card companies. I think it is built just into the overhead cost of doing business...that is why it is so important to the smaller mom and pop stores.
It is so sad...the banks are making major money.

 

[vacationer1954]

The store must reveal this to the customer with a notice on the door and at the register.

Online retailers must comply with the disclosure requirements too.