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)
You are not usually charged a fee for using your credit card. HOWEVER - the fees charged to the retailer by the credit card company, will covertly be passed on to all customers by charging more for their products !
A merchants account credit card is a special type of credit card that is issued from a merchant acquiring bank. These credit cards allow a vendor or business to accept payments from customers using a credit card.
Yes; the credit card companies charge the merchants in order to receive payments from them. In some cases (usually at small businesses or ones that do not do a lot of business monthly) the merchants can charge a small fee associated with using the credit card, or set a minimum amount to avoid the fee i.e. any purchase under $5 gets charged a fee, anything above that amount doesn't.
No, it would be a violation of the merchant's agreement with the credit card company, and they would lose their right to accept that credit card.
credit card: no worries if card is lost all you have to do is annul it. Debit card: you have to be in charge charge card: don't really exist
Credit Cards are a type of charge card. American Express is a charge card brand that offers both credit and debit cards. It depends on the account type of the person using it.
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 "discount" for cash, which works out to essentially the same thing, and while it's becoming less common than it was a few years ago, some merchants do charge a "transaction fee" for using a debit card (they are required to notify you of this; the notification generally takes the form of a sign or sticker on the unit you swipe your card through).
No, there is no charge.
You can have itunes charge to your credit card or buy a prepaid card either a itunes card or a prepaid credit card ...
This is determined by the companies credit card merchant. Most merchants take from 2-4 days.
You do not need to be an authorized signer, but you do need the permission of the card holder. You should also be aware that some merchants ask for identification and may not accept your use of another person's card.
A virtual credit card is almost like a normal credit card but it used only over the internet. It is a one time use credit card, that allows you to set your own limit. It is important to contact the merchant before using the virtual credit card for purchases because not all merchants will accept them.
No the physical card is not required to charge to your credit card account. All they need is the credit card number and back code. So yes they can charge things to your card.
Probably same day, done electronically. Depends on merchants method of transaction.
(in the US) There is no law against it.
"Credit card merchants offer varying rewards programs. This includes some merchants who do not offer any rewards programs, but instead offer lower rates."
Yes. It applies a 2Euro handling charge when using laser card. as opposed to 6Euro when using credit card.