This is my kids tuition collection service, so it’s not the neighborhood pizza parlor where you shrug you shoulders and pay.
It comes out to A LOT of money on an ongoing basis.
So my question is whether VISA allows this under some merchant agreements, or is it worth threatening them with a complaint?
According to VISA’s website, merchants "may not
impose any surcharge on a Visa transaction. You may, however, offer a discount
for cash transactions, provided that the offer is clearly disclosed to customers
and the cash price is presented as a discount from the standard price charged for
all other forms of payment."
Convenience fees are allowed:
"For merchants who offer an alternate payment channel for customers to pay for
goods or services, a convenience fee may be added to the transaction amount.
If the merchant chooses to assess a convenience fee to its customers, the merchant
must adhere to the following rules:
• The fee is being charged for a bona fide convenience of using an alternative
payment channel outside of the merchant’s normal business practice (see
example below).
• The fee:
– must be disclosed to the customer as a charge for the convenience of
using the alternate method to pay
– is applied only to non face-to-face transactions
– must be a flat or fixed amount, regardless of the amount of the
payment due
– is applied to all forms of payment products accepted in the
alternative payment channel
– is included as part of the total transaction amount
– cannot be added to a recurring transaction
– is assessed by the merchant that provides the goods or services to the
cardholder and not a third party
• The customer must be given the opportunity to cancel prior to the completion
of the transaction"