All merchants are allowed to charge their customers a convenience fee for using a credit card if the customer is using a non-customary payment channel.
For example, if a business primarily accepts payments in person, a convenience fee may be added if their customer uses a mail or telephone order.
Can businesses charge a fee for paying with a debit card?
Under a court settlement that went into effect in January 2013, retailers in many states are allowed to add a surcharge to credit (but not debit) card payments made by Visa and Mastercard. Currently, merchants can pass along fees in the form of a surcharge equal to what they pay to accept the card, up to 4 percent.
What states is it illegal to charge extra for credit card?
Eleven states—California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas—and Puerto Rico have laws that prohibit merchants from charging consumers with surcharges on credit card transactions.
Are convenience fees legal?
Convenience fees and surcharges are legal, as long as they stay under a certain percentage of the purchase price and aren’t assessed in a state that bans them.
How much does visa charge per transaction?
Interchange fees are typically two parts, consisting of a percentage and a transaction fee. For example, 1.51% plus $0.10 is the current Visa interchange fee for a swiped consumer credit card.