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Thread: Extra Fee Using Credit Card

  1. #1
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    Default Extra Fee Using Credit Card

    I have noticed lately that there seems to be an increase in stores that wish to charge an extra fee if a person is paying with credit card. Is this a legal practice in the Dominican Republic? Any information would be great. Thanks Tom

  2. #2
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    Not sure if it's against the law, but it's probably against the card companies' rules: businesses can offer a discount for cash payments but should not charge extra for card payments.

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    places in atlanta ga do that if it is under $3 tell you it must be $4 or more to use your CC
    i just leave

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    has nothing to do with the DR, it is what's happening to the US...

  5. #5
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    Hi...

    Charging xtra for CC use is in violation of company's franchise agreement with major credit card companies...

    Stores don't want to lose their license to accept MasterCard or Visa.

    Turn 'em in to CC company...this will stop this practice.

    Period...

    That's all folks...

    Ol' Phil

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    maybe back home Phil,
    and btw i do not see the reason for such neither.
    JDJ,
    ha ha,
    yeap, that's sorrily not new,
    few years ago i even had a Lad as my new accountant,
    til i told her to tell me the neto rate of a bill which i threw on the table, would've been funny if she not would've been my new (ex) accountant.
    and right, for the few bucks difference just arrived tired, heck, if that nice guy would have calculated the right rate he may got a nice tip worth that difference.
    i still take at my own business here in PC a extra fee for the use of CC's, too.
    actually i am thinking about to raise the rate a bit and offer a discount for customers who pay cash, who pays CC has the usual rate.
    but heck, where's the real difference??
    who pays cash get's the same product a bit cheaper, 'cause when paid bu CC you have to give some cash to the CC provider, finally it is absolutely the same, just looks different when announced on commercials. sure the banks wanna see your CC's used, every day, for every coffee you get by the way on daily duty, 'cause they make their bucks with such.
    but for the customer???
    a discount for cash payment over the usual rate when paid by CC or a usual cash rate offered and a extra fee above that one when paid by CC, where's the difference?
    Mike

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    I haven't come across it that often but as it happens I did just this weekend, at a hotel in the capital. The receptionist practically admitted that they only paid tax on cc payments, hence the 16%.

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    First of all, if you read the contract with Cardnet, it says you can't charge more for the use of CCard so, in theory, they shouldn’t do that.
    Second, the percentage charged by Cardnet vary according with the size and type of business, 5% is maximum but usually is less than 4%, for big business is MUCH less than 4%.
    The real reason, as stated by Chirimoya, is because the CCard company retain in favor of DGII an additional 2% of transactions as an ITBIS advance, and report the total of transactions made by the business each week so, using statistics from similar business the DGII can extrapolate the total volume of transactions (CC+cash)

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    It is true that charging a different rate for a credit card vs any other form of payment might well be a violation of the merchant agreement between the credit card company and the merchant. However, that is almost always focused only in the United States. Furthermore, there are many ways around the "violation" which are perfectly acceptable to credit card companies.

    If a company discloses an "administrative handling fee" for the use of a credit card and charges separately for it, that is perfectly acceptable. Many companies outsource the credit card processing and, of course, there is an administrative cost to doing this. So charging a fee to cover it or even to make a profit on it is valid and legal.

  10. #10
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    All merchants accounts I had did have strict rules:
    - no minimums could be imposed
    - no surcharge on CC payment permitted. Cash discount was OK though.
    Discover is more lenient, Amex same as VISA/MC and Diners Club is pain in the a##

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