Posted by
Ed
17 yrs ago
Reposting due to system error
2% Credit Card Surcharge
Posted by carrie1212
I'm signing up for a course and the institution will impose a 2% surcharge if I pay with a credit card. Is this legal? When I mentioned to them that it may be illegal to charge this, they said that it's not, but they did admit that the practice is discouraged by the credit card companies.
I came across an article in The Standard that seems to suggest that it's more than discouraged, that it may be downright illegal! anyone know for sure what the stance is on this? and any suggestions on what course of action I should take?
thanks!
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When you use a credit card you get a benefit (rewards points, usually, plus an interest-free period in most cases) and the merchant gets paid less than the amount of the bill or invoice.
Who should pay for the difference? Some businesses absorb the difference, but it seems fair to me that businesses should have a choice as to whether they absorb it or not - provided they publicise their policy. You have a choice whether or not to go elsewhere, and you have a choice whether or not to use a credit card.
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Ed
17 yrs ago
I think by the letter of the law its not allowable - but if pushed the card company would just pass on the 2%... so in effect they are giving you a choice.
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I am from the credit card industry. The merchant contracts with a bank in order to accept credit cards. In this merchant contract, they accept to (i) not surcharge or (ii) suppress the use of credit cards.
You can complain to the bank of this merchant AND to visa/mastercard's hk office depending upon what brand your card is issued upon.
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