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Very Important!!!Credit Card Service Charge for Customers
Very important info for all of us that accept credit or debit cards for our business and even for those that use these cards to purchase items.

As of Sunday, we can now charge our clients(if you want) a surcharge for using a credit card (NOT DEBIT!!).

I copied some quick notes for all of you to glance at. PLEASE read the whole article, the link is below. And notify your CC provider or read your new credit card rules.

Diana Bonn (diana from indiana)

"As of this Sunday, Jan. 27, merchants who accept credit cards issued by Visa and MasterCard will be allowed to add a service charge to the purchase price."

"Merchants still cannot add a surcharge to debit card transactions."

"Credit card surcharges are banned by law in 10 states: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas."

"Dworsky points out that stores factor in the cost of processing credit cards when they price their merchandise. Charging for that again, he said, would be double-dipping, unless stores rolled back their prices – which no one expects them to do."

"The new rules from Visa and MasterCard require retailers who apply a credit card surcharge to post a notice at the store’s entrance. The exact percentage of the surcharge does not need to be disclosed until the point of sale. The customer receipt must list the amount of the surcharge."

"Online stores with a surcharge will not be required to have a notice on the home page. They only need to alert shoppers about this when they reach the page where credit cards are first mentioned. In most cases, that means the final step of checkout when the purchase is being completed."

"a merchant who adds a surcharge to purchases on a Visa or MasterCard would have to do the same with American Express cards. But AMEX prohibits surcharge fees. So a merchant who accepts American Express as well as Visa/MasterCard would not be able to surcharge any of those cards."

"The surcharge is supposed to equal the actual cost of processing the credit card transaction, which is typically 1.5 to 3 percent. Under the agreement, the fee is capped at 4 percent. The surcharge can vary based on the type of card. For example, it could be higher for a rewards card or premier card."
I don't understand why they're charging a surcharge when the cost of cc. transaction is considered a business expense and is tax deductible, isn't it? Where is money being lost at?
(01-27-2013, 04:57 PM)Donna in Huntsville, TX. Wrote: I don't understand why they're charging a surcharge when the cost of cc. transaction is considered a business expense and is tax deductible, isn't it? Where is money being lost at?

Even though ya can write off the charge as an expense it is still money out of your pocket since it comes out of your profit margin. In essence you are giving the cc a percentage of what you make. Some try to recoup that with a service charge.

And ya need to make sure your state doesn't have a law about this. Mine does. Ya can't add on a surcharge, but ya can have different amounts based on whether they pay with a cc or not. Gas stations do it here, but it is clearly posted.

I think this is dumb. Shouldn't businesses be factoring the cost of these fees in to their end price to the customer? I will probably not frequent any businesses that choose to charge these fees now.

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