Passing on the Credit Card Charge

[timzerofive]

California - Los Angeles

Is it legal to pass the credit card fee we get charged when we process a credit card on to our customer? At the moment, we are passing this fee (3%) onto our wholesale customers by indicating that all the prices we quoted are with cash discount and if they are not paying by cash, we will need to remove that discount. Is this legal? How about to retail customers?

 

[mykoleary]

California - Los Angeles

Is it legal to pass the credit card fee we get charged when we process a credit card on to our customer? At the moment, we are passing this fee (3%) onto our wholesale customers by indicating that all the prices we quoted are with cash discount and if they are not paying by cash, we will need to remove that discount. Is this legal? How about to retail customers?

Don't forget to ask the not so obvious question beyond legality. Is this allowed under the terms of my card processing accounts?

Things like this and minimum required purchase amounts are against the policies of some card processors, and oft times, the card issuers (Visa, etc...) themselves.

 

[JETX]

"Is it legal to pass the credit card fee we get charged when we process a credit card on to our customer?"
*** Some states prohibit a merchant from applying a surcharge for credit card use. However, ALL merchant agreements prohibit them. So, read your merchant agreement (with the card company) and you will find that you CANNOT do what you are doing and they can suspend your account for it.

 

[timzerofive]

Thank you.