Are businesses allowed to charge a fee when a customer pays with a credit card? With the increasing costs of merchant services many businesses are adding a fee to pay with credit cards or simply not accepting credit cards for large purchases. In this video you will learn the rules businesses must follow in order to charge a fee to pay with a credit card.
Do you know a business that adds a fee to pay with a credit card?
Many businesses are simply adding fees and not following rules set by the card brands.
1. Businesses must register with the card brands to pass on the fee
2. They cannot add a fee for debit
3. They must process surcharge and credit card fees together as one transaction.
4. Some states cannot add a fee for a credit card.
5. They must notify the customer of the fee at the time of purchase.
6. The receipt must show the fee as a separate line item.
7. The fee cannot be more than 4%
Next time you get charged a fee for paying with credit card report it to the card brands and they will investigate to see if the business is registered and following the rules. If the business does not have a compliant surcharging solution they run the risk of being terminated by the card brand or fined.
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