What would you like to do?

Can merchants charge a fee for using a credit card?

already exists.

Would you like to merge this question into it?

already exists as an alternate of this question.

Would you like to make it the primary and merge this question into it?

exists and is an alternate of .

From MasterCard's merchant rules - Visa has similar wording in their agreement.

5.9.2 Charges to Cardholders

A Merchant must not directly or indirectly require any Cardholder to pay a surcharge or any part of any Merchant discount or any contemporaneous finance charge in connection with a Transaction. A Merchant may provide a discount to its customers for cash payments. A Merchant is permitted to charge a fee (such as a bona fide commission, postage, expedited service or convenience fees, and the like) if the fee is imposed on all like transactions regardless of the form of payment used, or as the Corporation has expressly permitted in writing. For purposes of this

1. A surcharge is any fee charged in connection with a Transaction that is not charged if another payment method is used.
2. The Merchant discount fee is any fee a Merchant pays to an Acquirer so that the Acquirer will acquire the Transactions of the Merchant.

10A.3 Charges to Cardholders

Rule 5.9.2 does not apply in the European Economic Area.
If a Merchant applies a surcharge for payment by Card, the amount or method of calculation of the surcharge must be clearly indicated to the Cardholder at the POI location and must bear a reasonable relationship to the Merchant's cost of accepting Cards.

  • I just read my merchant member agreement with V/MC and it states No, the merchants may not impose any sort of fee. This is a Visa/MasterCard regulation that clearly states that merchants may not impose any surcharges or minimums or maximums. Please read your merchant agreement carefully; As stated earlier, one may give the customer a cash discount...that is the only way around it.

  • I would have to dig out my merchant agreement and double check on this - but when I got my credit card terminal I know that we were told we could NOT charge anything additional for credit card purchases. The part I am unclear on is whether that was a violation of my merchant agreement, or just illegal. What I was told by other merchants is that you can get around it by offering a "discount" for using cash and telling the customers that the prices posted are assuming that you are paying with cash. That being said, I have seen many other stores charging a usage fee (which I can not blame them at all as the processing expenses really add up), but I have noted that it has always been little mom&pop type businesses doing it and never any large or chain type store.

  • The first author is correct that merchant agreements prevent most merchants from charging a convenience fee. That being said, Visa, MasterCard, American Express and Discover will allow service providers to charge a fee. For example, there are companies who accept tax payments on behalf of the IRS and many states that charge a convenience fee. The card companies even promote this on their websites. If you visit Visa's website and search for "convenience fee" you'll find more information.

  • The first answer needs elaboration on the part of section 10A.3, as reading this as it was originally posted led to the belief that section 10A.3 clearly contradicted the preceding disclosure. In the actual MasterCard merchant guide it is clearly designated that the information from 10A.3 applies only in Europe, and that section 5.9.2 is the applicable policy guideline for merchant transactions within the United States and Canada.

  • Also, it should be said that the original answerer violated copyright law, Wiki s terms of service, and MasterCard's proprietary data clause which is applicable to any person who views the content of its merchant guide. The verbatim posting of content from that guide that exists here is illegal, and should be modified to exist as a paraphrase, though that would still violate MasterCard's proprietary data clause.

  • At present (Sept 2010), the Mastercard merchant rule is located in Section 5.11, Prohibited Practices. While surcharges are not a violation of federal law, they are illegal in 10 states. (See the discussion page for a list)

  • In my understanding, it is not a violation of copyright law, Mastercard's proprietary clause, or Wiki s terms of use to cite and quote material that is publicly available, provided you are not doing so for commercial gain, representing yourself as the author, or reproducing an exact replica of the material, logos, etc. The Mastercard Merchant Rules are publicly available online.
63 people found this useful
Thanks for the feedback!

Can merchants charge a fee for using a debit card?

No. When I operated a business from 2009-2011 in Ontario my debit machine regulations stated very clearly that I was not permitted to surcharge the customer with any minimum t

Where do you report merchants that charge illegal credit card fees?

HOW TO COMPLAIN When merchants violate the policies described here, report them to Visa, MasterCard, and American Express. Address your letter to:Visa USA Consumer Relation

Is it legal for merchants to charge a credit card processing fee?

It is legal in all states except the following: CaliforniaColoradoConnecticutFloridaKansasMaineMassachusettsNew YorkOklahoma Texas. However, Visa and Mastercard merchant agree

How does one file a complaint against a merchant charging a credit card processing fee?

It depends whether the merchant made it clear that they charge a fee for credit card payments. If they have a notice at the checkout stating something like 'credit card transa

Why do the merchants charge the processing fee in credit cards?

Merchants can now apply fees to credit card transactions and  recover some of their own processing costs, VISA and MasterCard  recently changed the basic merchant fees regul

What is ach hold merchant bankcd fee this was a charge on the online statement for my credit card?

An ACH hold merchant banked fee being charged on one's online  credit card account statement is not uncommon. This is a common  term that is used to describe many types of p

Can merchants charge a fee for using a credit ca?

The merchant agreements that they have with the credit card companies generally prohibit them from charging extra for the use of the credit card. However, some places offer a