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Merchants Discouraged From Charging New Visa and MasterCard Surcharge
New rules allow merchants to add a fee when customers pay using a credit card.
“Don't expect many merchants to start charging the new surcharge because it could alienate customers and drive business to their competitors.”
Under the provision, merchants must post signs at their store entrances and cash registers notifying consumers that they impose a surcharge on credit-card transactions (debit-card surcharges are not allowed). They must also include the amount of the surcharge on customers' receipts, and generally are not allowed to charge more than what they pay to accept cards.
Visa and MasterCard are preparing for the eventuality that some merchants may elect to surcharge, and they are working to ensure merchants have the tools needed to surcharge, and that such fees are "aligned with the settlement agreement" and "transparent to the consumer.”
“Instead of surcharging customers, merchants should develop a plan to reward customers for paying with cash” Mathews said. "Credit card companies use points, miles, and cash back to encourage their cardholders to use credit or debit. Merchants must offer customers an equal or greater incentive for using cash to level the playing field.” Mathews said.
For a report on encouraging customers to spend more cash visit www.bit.ly/nosurcharge.
Page Updated Last on: Feb 13, 2013