Is a Merchant Allowed to Charge Customers Credit Card Processing Fees?
Full Question:
May a company charge its customers a fee to specifically cover the fees a credit card processor charges it?
02/19/2009 |
Category: Debts and Credit |
State: Minnesota |
#15293
Answer:
The answer will depend on the merchant's contract with the credit card company. Many credit card processing companies will not allow a merchant to charge a "fee" to accept a credit card. If the merchant does and a customer reports the merchant to the credit card processing company, the credit card company may not allow the merchant to accept credit cards. They then pass this information along to all the other credit card processors and the merchant may end up not being able to accept credit cards at all. Some companies attempt to get around this by setting prices higher and then offering a "discount" price for payment in cash.