Recently, a news team in Portland, Oregon performed a bit of an exposé on small businesses that are charging fees to credit card users. As I have mentioned before, it’s perfectly legal for businesses to tack on a little extra when a customer decides to pay with a credit card. Although these business owners are not breaking any laws, they are, however, breaking their agreements with the credit card issuers.
When the news team contacted MasterCard, for example, they stated that “a merchant must not directly or indirectly require any MasterCard holder to pay a surcharge.” However, MasterCard said that merchants are “allowed to give a discount for cash payments.”
So, while MasterCard does not approve posting a sign stating that credit card users must pay a fee for the convenience, they do allow for providing discounts to those that use cash. In the end, one really isn’t much different from the other as it’s merely a matter of semantics. I suppose this method prevents creating a negative connotation associated with credit card use. But, really, what’s the difference?
Visa was even more vague with its statement, simply saying “Visa’s rules require merchants to always honor valid Visa cards, regardless of purchase amount.” I don’t see anything in that statement about whether or not merchants can tag on a fee when using the card, only that they are to accept the card for payments.
At each of the stores the news team visited, the managers and owners said they felt justified in passing on an extra fee to credit card users. They said that their profit margins were so small, particularly with items such as cigarettes, that they have to charge credit card users extra in order to still make money after the credit card fees are paid. One manager even said “we can wipe out Visa or MasterCard period – we are doing a favor to our customers.”
Whether they feel justified or not, tacking on these fees to you breaks the agreements they have signed with the credit card companies – even if the companies want to be a bit elusive about it in their statements. As such, you can report violators to MasterCard by calling 1-800-300-3069 or with Visa by e-mailing askvisacorporate@visa.com.
Maybe the companies will take a bit more action if they receive enough complaints about these credit card fees.
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