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As of Today, Sunday, merchants can charge up to 4% surcharge for any purchases made with a Visa or Master Card.
If they charge a surcharge the store must post a notice and on-line merchants must post it on their Home page
One more thing for us to watch .
I suspect this will start out with small business and in a couple of years everyone will be charging the surcharge.
People often put larger purchases on their credit Card and this will really add up.
On a $1500 computer purchase it will add $60.
Apparently there was a class action suit by merchants who felt they were being gouged by the Credit Card companies so the solution was a law to pass the charges on to the customers rather than rein in the CC companies :-(
__________________ "I have not failed . I've just found 10,000 ways that won't work" --Thomas A. Edison
And interestingly this has come at a time when we have become a credit card society. I never write a check at the grocery store anymore - I pull out plastic. Maybe I will be using my Discover and American Express more than my Visa.
All of these stores already have the charges from the CC companies built in their prices. So this is just a legal way to gouge us. Just another reason to use our cc less!
prior to this rule, it was not legal for a merchant to agree to accept less in exchange for your paying cash.
the following states still do not permit allowing merchants to charge extra for paying with a credit card: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas.
__________________ Dear Paperlicious is my blog...with a series on how I'm learning to improve my cardmaking by studying others.
PayPal processes Credit Cards for those who do not have a PayPal account.
I wonder if they will start charging this surcharge or if it will be at the discretion of the merchants selling the products ?
__________________ "I have not failed . I've just found 10,000 ways that won't work" --Thomas A. Edison
A fair number of British companies have been doing this for a very long time, and interestingly, it is actually the bigger companies that do it the most, rather than small ones! Typical one is travel agents- book your holiday through them,which is going to be �1000+, and pay by credit card- and lets be honest, most of us do, after all, there have been too many instances of travel companies/airlines going broke- and they add on 3%.
This has been the norm for at least the last 10 years over here, but I have never been charged by PayPal, so you will find it is the merchants, rather than Paypal who will charge it.
I wonder how this will affect online shoppers. I know that I won't be shopping online with US stores that will be charging the surcharge. I get overcharged enough with exchange rate and shipping. To add another 4% on top just means I won't be buying anymore or at the very least, only buy from Canadian companies. I think its ridiculous since, as was mentioned earlier, these fees are usually already part of their selling prices. They are the cost of doing business.
prior to this rule, it was not legal for a merchant to agree to accept less in exchange for your paying cash.
the following states still do not permit allowing merchants to charge extra for paying with a credit card: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas.
There are several gas stations in the Orlando area that have been charging more for using a credit card (other than their company's credit card). They have been doing this for quite a few years.
It always annoyed me because they advertise the lower cash price on their signs but havr the disclaimer in much smaller letters above the price.
There are several gas stations in the Orlando area that have been charging more for using a credit card (other than their company's credit card). They have been doing this for quite a few years.
It always annoyed me because they advertise the lower cash price on their signs but havr the disclaimer in much smaller letters above the price.
I don't understand why they have been allowed to do this. Florida is definitely one of the states that does not permit adding the CC surcharge, yet gas stations have been getting away with it because they advertise as the cash price. Well to me it is the same thing. I do not buy gas at these stations. But yeah you got to watch them because the sign is so tiny.
There are several gas stations in the Orlando area that have been charging more for using a credit card (other than their company's credit card). They have been doing this for quite a few years.
It always annoyed me because they advertise the lower cash price on their signs but havr the disclaimer in much smaller letters above the price.
It isn't just Orlando either as it is happening in my area of Florida too.
Correct me if I am wrong since I do not have a Debit card, but I don't think a Debit card offers the same protection as a Credit card.
If you don't get the product you paid for and the merchant you purchased it from refuses to correct the problem you can file a claim with a Credit Card Co. to have the amount you paid credited back to your account.
When you pay with a Debit card or a check the money was taken from your bank account and sent to the merchant. I don't think the banks have a way to get the money back.
Credit card accounts are like giant clearing houses where everyone involved has an account with the same CC company and those accounts can be debited or credited.
__________________ "I have not failed . I've just found 10,000 ways that won't work" --Thomas A. Edison
There are several gas stations in the Orlando area that have been charging more for using a credit card (other than their company's credit card). They have been doing this for quite a few years.
It always annoyed me because they advertise the lower cash price on their signs but havr the disclaimer in much smaller letters above the price.
Correct me if I am wrong since I do not have a Debit card, but I don't think a Debit card offers the same protection as a Credit card.
If you don't get the product you paid for and the merchant you purchased it from refuses to correct the problem you can file a claim with a Credit Card Co. to have the amount you paid credited back to your account.
When you pay with a Debit card or a check the money was taken from your bank account and sent to the merchant. I don't think the banks have a way to get the money back.
Credit card accounts are like giant clearing houses where everyone involved has an account with the same CC company and those accounts can be debited or credited.
I didn't read all of the replies, but I thought I would answer you since I work in a credit union in the department that handles both credit and debit cards. As far as the cardholder is concerned, you have the same protection whether you use a credit card or debit card. As far as the banks and credit unions are concerned, it is sometimes very tough to get the money back. It depends on the type of fraud (online vs brick and mortar) as well as other factors. The biggest difference is, the money comes directly out of your checking account for debit cards. I know our credit union works with the member and will waive all nsf fees and post legitimate items up to the amount being reported as fraud until the fraud can be confirmed. Most bigger banks just give your money back regardless and write off the loss if they can't recover it from either the merchant or the insurance company. Smaller banks and credit unions may require more input from the card holder to try to curb the losses so they are n't passed onto to their customers/members.
Plastic cards are very convenient and I use my debit card for everything. But there are a lot of bad people out there committing fraud, and it gets worse every day. Get ready because in the next few years we will be required to replace our current cards with the magnetic strips on the back with the microchip cards that are already being used in Canada and Europe. They are supposedly harder to use for fraud. It's really "fun" keeping up with all the fun stuff the government keeps throwing at us. Not! :rolleyes:
I work in a credit union and yea, it's real fun trying to explain all this stuff to our members. I am guessing you may see the fees being charged by larger stores that offer their own credit cards. I think smaller merchants will only hurt their business by charging the fee. So it will be interesting to see which merchants start charging the fees first. I don't use a credit card so I am glad I don't have to worry right now. But I am sure it is only a matter of time until they will be allowed to charge fees for the debit cards too.
All of these stores already have the charges from the CC companies built in their prices. So this is just a legal way to gouge us. Just another reason to use our cc less!
Actually, when it comes to small businesses, this is not necessarily true.
There are many small businesses in retail (like my husband's) who find it very hard to reflect credit card fees in prices. First of all, we are trying to compete with large companies who start off purchasing their product for much less than we can because of their volume. Sometimes we cannot even buy the product ourselves for the price they are able to charge the consumer. Second, the processing fees we are charged by the credit card processing companies are higher than those charged to these same competitors. So to build in the fees to our markup would take our prices too high to compete, and we would lose business. This change allows us to keep the prices at a lower competive level, and give people the option to buy at those prices using cash.
That said, I don't yet know if our decision will be to charge a fee - it is something we would not like to do, but at least now we have the choice to do what will work best for the business.
We will not be charging this surcharge - but I have noticed in the past that certain credit card companies have charged an extra fee on international orders and blamed it on the merchant, which was us. This was unfair of them as we do not ever add surcharges, and we had to point it out to several credit card companies. Now we make a point of informing folks that some CC companies do this, both on our site and in communication with the purchaser. It's a good idea to look around and compare credit card companies folks, to be sure you are with someone who treats you fair and square and tells you the truth.
We also at Chic and Savvy Crafters will not be charging the additional fee. It already costs enough to get your hands on new goodies. Also, even with the increase in the price of postage, we will still be shipping all dies and clear stamps for FREE!
blessings
prior to this rule, it was not legal for a merchant to agree to accept less in exchange for your paying cash.
the following states still do not permit allowing merchants to charge extra for paying with a credit card: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas.
I saw the story on our local news, and they did mention that my state (Florida) does not allow the pass-through of the fee.
Get ready because in the next few years we will be required to replace our current cards with the magnetic strips on the back with the microchip cards that are already being used in Canada and Europe. They are supposedly harder to use for fraud. It's really "fun" keeping up with all the fun stuff the government keeps throwing at us. Not! :rolleyes:
After a couple years, I've gotten used to the microchip cards. It's faster. Our cards still have mag stripes (since we go shop in places like the States).
After using the chip cards, I found it frustrating in the States to revert to handing over my card, and then signing. Here, I keep control of the card all the time.
Yea, for Amber at Chick and Savvy Crafters for free shipping and also not adding on fees. What an fun company to shop with. I always feel like I'm getting a bargain. Thanks Amber.
Rose Reynolds
Burleson, Tx
After a couple years, I've gotten used to the microchip cards. It's faster. Our cards still have mag stripes (since we go shop in places like the States).
After using the chip cards, I found it frustrating in the States to revert to handing over my card, and then signing. Here, I keep control of the card all the time.
I understand it is convenient, but it can't stop fraud online and it is very costly to convert and to provide the cards. They cost more money to produce. For small credit unions like where I work, that can have a huge impact financially. I want to be able to keep my job so I can buy more stamps.
I have a feeling most companies won't charge now. It would be bad PR and hurt business. Once the buzz about the fees diminishes we will probably see merchants start to quietly charge fees.
We will not be charging this surcharge - but I have noticed in the past that certain credit card companies have charged an extra fee on international orders and blamed it on the merchant, which was us. This was unfair of them as we do not ever add surcharges, and we had to point it out to several credit card companies. Now we make a point of informing folks that some CC companies do this, both on our site and in communication with the purchaser. It's a good idea to look around and compare credit card companies folks, to be sure you are with someone who treats you fair and square and tells you the truth.
Actually it is a federal regulation and is not just for credit cards. You will pay international fees for debit card transactions and ATM withdrawals made in other countries. So if they want to blame anyone they can blame the government. It is not a matter of the card company treating you fair. If they don't pass those fees onto you (because they are paying them to the processor) they will get the money back in some other way. Higher rates or other fees. We charge the fees where I work because we have to pay them.
Actually it is a federal regulation and is not just for credit cards. You will pay international fees for debit card transactions and ATM withdrawals made in other countries. So if they want to blame anyone they can blame the government. It is not a matter of the card company treating you fair. If they don't pass those fees onto you (because they are paying them to the processor) they will get the money back in some other way. Higher rates or other fees. We charge the fees where I work because we have to pay them.
But Claire was talking about cc not debit or ATM withdrawals. Some companies apparently apply a surcharge for international cc transactions then blame the merchant and say they apply these fees. Of course there are currency fees which are never charged at the actual percentage but are marked up so the cc company makes enough $ that way without adding a charge for international transactions. Mine doesn't charge this or I'd be broke! I shop internationally all the time! Or if they do, it has to be such a tiny fee I've not noticed it.
Foreign ATM and debit cards are different because your home bank has to pay the fee charged by the bank who owns the ATM or terminal. Plus their own processing fee for not using your own bank. Different than a cc company.
__________________ RebeccaEdnie Mixed Media Artist, Paper Crafter, Jewelry Designer SCSDirtyDozenAlumni Www.Boxofchocolatescrafts.Com YouNeverKnowWhatI’mGoingtoMake
Travelling south from Canada a couple of weeks ago I too noticed at gas stations two prices listed in small print, with a lower price for cash. We went home over the week-end and found that while price of gas has risen 30 cents per gallon in Arizona in 3 weeks the price at home was the same as before we left and 20cents cheaper we don't have two different prices.
For years I have had to pay a 4% currency conversion rate from my CC on any purchases from companies outside the USA. I am very reluctant to buy from any company outside of the USA, but on rare occasions when it is the only place to get what I want then I have done it . Some of my Parchment craft patterns and CD's were from the UK and they were very expensive.
The actual foreign currency conversion is not favorable against the USD, plus the additional postage and the 4% currency conversion rate to the CC makes things quite costly.
If they add an additional up to 4% CC fee I will definitely never buy from a company outside the USA.
__________________ "I have not failed . I've just found 10,000 ways that won't work" --Thomas A. Edison
the following states still do not permit allowing merchants to charge extra for paying with a credit card: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas.
Stores aren't allowed to do different things in different states, so if a store has a location in one of these states and can't charge the fee there, they can't charge the fee in any of their locations. The way I understand it, this would prevent most major retailers with a nationwide presence (Target, Walmart, Best Buy, etc.) from charging it anywhere.
Actually, when it comes to small businesses, this is not necessarily true.
There are many small businesses in retail (like my husband's) who find it very hard to reflect credit card fees in prices. First of all, we are trying to compete with large companies who start off purchasing their product for much less than we can because of their volume. Sometimes we cannot even buy the product ourselves for the price they are able to charge the consumer. Second, the processing fees we are charged by the credit card processing companies are higher than those charged to these same competitors. So to build in the fees to our markup would take our prices too high to compete, and we would lose business. This change allows us to keep the prices at a lower competive level, and give people the option to buy at those prices using cash.
That said, I don't yet know if our decision will be to charge a fee - it is something we would not like to do, but at least now we have the choice to do what will work best for the business.
Thank you for expressing this so well. It seems we live in a time when people will drive out of town and spend $15 on gas to save $2 over what they would pay at a local store. Then they wonder why the small business can't stay open for them! Pretty soon every town will look the same with only "big box" stores. Personally I'd rather pay a little bit more for the great selection and personal service at a privately-owned store than stand in line 40 min. at a large chain that doesn't really care about anything but their profit margin.
New Credit card surcharge
