credit card charges

[B96brig4CC]

As to not clog up or change the subject on the thread about FTF transaction acceptable payment, I am starting this thread

An interesting thing was mentioned on surcharges. That it is illegal to do in OKlahoma. Actually it is illegal to do no matter where you live if you are using visa or mastercard.

Here is a write up on it.....

Charging surcharges on credit card transactions
Name it any way you want: surcharge, convenience fee, credit card acceptance fee or checkout fee – Visa and MasterCard do not allow retailers to charge an additional fee on top of a credit card transaction.



MasterCard states that “A Merchant must not directly or indirectly require any Cardholder to pay a surcharge … in connection with a Transaction” (Page 114, 5.11.2 Charges to Cardholders, to date – document is constantly updated and therefore pages and paragraph numbers keep changing). If this is not clear enough: “MasterCard rules specifically prohibit merchants from adding a fee for acceptance of MasterCard cards. This is considered surcharging”.

Visa are saying the very same thing: “Visa rules do not allow retailers to charge cardholders a checkout fee for using their cards” and going a further step advising card holders to “report retailers that are charging checkout fees”.

Both Visa and MasterCard base their rules on discrimination laws, as surcharging a shopper paying with a credit card is, in a way, a shopper discrimination based on type of payment. Several US states have accepted the associations’ ruling and outlawed surcharges on credit card payments. These states are: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma & Texas.

So what does this mean? Do the associations and state regulators expect retailers to finance processing fees out of their own pockets? No. Retailers should have their processing fees embedded within their final prices and therefore are allowed to offer discounts for cash and check purchases, as well as for PIN debit cards, as long as such offers are made to all buyers.

It also appears that DM was right that Oklahoma has outlawed this.

 

[Have Blue]

If it is Illegal to charge a surcharge for CC transactions, how come the STATE does exactly this when paying by CC at the tag agency?

I guess it's OK for the government, but not for Businesses . . .

 

[Hump66]

Can you report a business for violating this? Does it matter if they say "I've got to add 3% to this since you're using a card, is that ok?" and you approve?

 

[bsmith918]

You are allowed to give a "cash discount", which is what is being done to circumvent the rules.

 

[MoBoost]

It is not "illegal" - it is just part retailer's contract. I just offer cash discount, .gov don't give a damn.

 

[B96brig4CC]

It is not "illegal" - it is just part retailer's contract. I just offer cash discount, .gov don't give a damn.

Oklahoma law

Oklahoma Statutes Article 14A titled "Uniform Consumer Credit Code".

§14A-2-417. Surcharge for use of credit card.
No seller in any sales transaction may impose a surcharge on a cardholder who elects to use a credit card in lieu of payment by cash, check or similar means.

 

[B96brig4CC]

Can you report a business for violating this? Does it matter if they say "I've got to add 3% to this since you're using a card, is that ok?" and you approve?

yes, you can report them and they will loose there merchant account with that company..... supposedly

 

[B96brig4CC]

If it is Illegal to charge a surcharge for CC transactions, how come the STATE does exactly this when paying by CC at the tag agency?

I guess it's OK for the government, but not for Businesses . . .

here is why they can do it.....not right in my eyes, but it's the gubberment.

Section 1144 of Title 47 of the Oklahoma Statutes states, in pertinent part:

A. Payments for any required registration fees, license plates or decals or excise taxes except as otherwise provided by law, may be made as follows:

2. By a nationally recognized credit or debit card issued to the applicant. The Tax Commission may add an amount equal to the amount of the service charge incurred as a service charge for the acceptance of such credit card. For purposes of this paragraph, "nationally recognized credit or debit card" means any instrument or device, whether known as a credit card, credit plate, charge plate, debit card or by any other name, issued with or without fee by an issuer for the use of the cardholder in obtaining goods, services or anything else of value on credit which is accepted by over one thousand merchants in this state. The Tax Commission shall determine which nationally recognized credit or debit cards will be accepted by a motor license agent as payment for any required motor vehicle registration fees, license plates or decals or excise taxes. Provided however the Tax Commission must ensure that no loss of state revenue will occur by the use of such card.

 

[dieseltech09]

You are allowed to give a "cash discount", which is what is being done to circumvent the rules.

yes you are right. They can say 3% off for cash but they can not add anything to the price for using a credit card. They can factor it into their listed prce and then give a cash discount on top of that

 

[PUMPKIN]

snap on guy does this to me every friday. he adds 2.00 bucks every time i pay with a CC.