Is a VISA merchant allowed to levy a surcharge for use of credit card?
Posted on May 10th, 2010 by admin
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"
May 10th, 2010 at 10:02 pm
Yes, they are a loud to levy a surcharge. Visa contracts are very complex and visa provides representatives to the business for consultation on there policies. They give "boot camps" to merchants about what is permitted and not. Threatening them with a complaint is pointless. I suggest you discuss with the company other options for payment.
References :
Business owner, has dealt with Visa on many occasions.
May 10th, 2010 at 10:23 pm
Some public entities like government and institutions for education are allowed to add the merchant fee on top of the price of the transaction.
Most have moved away from this practice, but some still do.
References :
Experience
May 10th, 2010 at 10:30 pm
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"
References :
I know how to google for VISAs merchant website.
May 10th, 2010 at 10:38 pm
No, it is contra to the merchant’s agreement with VISA. Yes, I know it happens all the time.
I’d love to know what VISA does about the violation if reported.
References :
Banker