Can businesses do this?!

[LuckyTaxi]

These are both at asian stores.

Bought $300 worth of jewelry and the lady tells me she has to charge extra money cuz I am using a CC.
I went to a restaurant and he added $4 saying it's because I use my credit card. That's it I am never going
to an asian store again!

Too bad I'm asian and the gf loves going to asian stores.

 

[Mill]

Can they? Well they did didn't they? Are they allowed to in their contract with their CC processor and VISA/MC agent? Probably not. Report the bastards.

 

[Soybomb]

If its anything like a computer show they get around their contract by printing somewhere that listed prices reflect a 3% cash discount or something.

 

[LuckyTaxi]

Originally posted by: Millennium
Can they? Well they did didn't they? Are they allowed to in their contract with their CC processor and VISA/MC agent? Probably not. Report the bastards.

Hmmmm ... i know they are doing it cuz they have to pay a fee to the CC company, but that's the price of doiing business. My friends tell me to pay cash next time since asian ppl like cash, but I'm not walking around with $100+ in my pocket. Thats what my CC are for!

Who would I report to? My CC company?

 

[LuckyTaxi]

Originally posted by: Soybomb
If its anything like a computer show they get around their contract by printing somewhere that listed prices reflect a 3% cash discount or something.

I don't see anything like that written anywhere. It's funny cuz on the door once you go in it there are a mastecard and visa card logo ("We Accept ...")

 

[Mill]

Originally posted by: lilcam

Originally posted by: Millennium
Can they? Well they did didn't they? Are they allowed to in their contract with their CC processor and VISA/MC agent? Probably not. Report the bastards.

Hmmmm ... i know they are doing it cuz they have to pay a fee to the CC company, but that's the price of doiing business. My friends tell me to pay cash next time since asian ppl like cash, but I'm not walking around with $100+ in my pocket. Thats what my CC are for!

Who would I report to? My CC company?

What kind of card did you use?

 

[LuckyTaxi]

Dont remember but I have both a Mastercard and VISA.

MBNA and Citibank

 

[giguana]

i used to work for a local computer shop and they give a "discount" if you pay with cash but they have both of the prices clearly marked.

 

[AgaBoogaBoo]

I'm of Indian origin and I'll give you a first hand experience in a few sentences as to why that happens

First, they generally want more money, which is one reason why if you go to a country like India, bargaining is a part of daily life. If something is priced at $40, haggle it down to $35 or so.

Well, I guess there is no "second" because it all kind of branches off of the first statement. At some of the Indian stores around where I live, you have to spend a certain amount before you can use a CC. At the good restaurants, atleast, they don't have anything like that making you pay extra.

If its an Asian store, just try haggling and tell them you'll go to (Name another close by store here) if they don't let you use a CC at that price.

 

[Mill]

Originally posted by: lilcam
Dont remember but I have both a Mastercard and VISA.

MBNA and Citibank

You would call either VISA or Mastercard then.

 

[Jugernot]

Sure they can... it's not illegal or against any rules. Some people see the ability to use a CC as a luxury and therefore charge you for it. I personally just wouldn't shop there anymore if you can get the same good elsewhere for around the same price.

 

[Mill]

Originally posted by: Jugernot
Sure they can... it's not illegal or against any rules. Some people see the ability to use a CC as a luxury and therefore charge you for it. I personally just wouldn't shop there anymore if you can get the same good elsewhere for around the same price.

Actually, it IS against VISA and Mastercard's rules. Read the thread.

 

[LuckyTaxi]

I've gone to other asian restaurants where many american visits, and they take CC straight up. No haggling or anything like that.

The jewelry store was another story. We bargained and had the lady discount us $20, but she added it back on anyways stating she needed to charge extra cuz of the CC. Too bad asian stores have some very cool jewelry!

 

[Hector13]

Originally posted by: Soybomb
If its anything like a computer show they get around their contract by printing somewhere that listed prices reflect a 3% cash discount or something.

putting up a sign saying it doesn't make it legal.

 

[Hector13]

Originally posted by: lilcam
I've gone to other asian restaurants where many american visits, and they take CC straight up. No haggling or anything like that.

The jewelry store was another story. We bargained and had the lady discount us $20, but she added it back on anyways stating she needed to charge extra cuz of the CC. Too bad asian stores have some very cool jewelry!

you let someone charge you $20 extra for using a credit card?

 

[LuckyTaxi]

my freaking fault. i didnt feel like arguing. i know better next time! imma call my CC company jsut to see what they say.

 

[TranceNation]

Asian stores aren't like US stores, you being asian should have already known that. They probably don't like customers who use CC or the sort, the most preferable payment is straight cash.

 

[Hector13]

Originally posted by: lilcam

Hmmmm ... i know they are doing it cuz they have to pay a fee to the CC company, but that's the price of doiing business. My friends tell me to pay cash next time since asian ppl like cash, but I'm not walking around with $100+ in my pocket. Thats what my CC are for!

Who would I report to? My CC company?

sadly my guess is that they care more about avoiding taxes than avoiding the 2-3% that visa charges them (though I am sure they want to avoid both).

Not making any generalizations, but when I go to "shaddy" stores in china town (hell, anywhere in NYC, actually), if you pay in cash they hardly ever enter anything into their cash register. That way there is no money trail and they probably don't declare the cash in their income.

 

[Marauder-]

dude - who cares - just use cash next time. Those asian stores are great - my last stop to one about 2 months ago was when I needed a quick 56k for an install. Got one for $9 bux. You just can't complain about that.

 

[MrHappyMonkey]

its not legal for a store to do this. By charging a premium to use a CC, it makes the credit card companies look less desirable in the eye of the consumer. Therefore the CC companies frown on "CC fees" This is written within the fine print of the Merchant account from their bank. I would give a call to your CC company and report this.

 

[jagr10]

Asians are really cheap (duh) and they make you pay for the extra charges they have to pay for. THey usually cash discount their prices so that's why they seem so cheap. If you pay by cash you'll get the item for let's say $100, but if you pay by cc then they'll add 3% because they get charged a fee for using the cc system. It's cheap i know. Plus, if more transactions are done by cash they can make fake receipts showing they made less money on an item. With cc transactions they can't lie on their tax returns.

 

[Gibson486]

the fee is simple. with cc, you have to wait for the money. Cash, you get it there now. The practice happens everywhere, not just asian places. Jewelry stores do it teh mos though when they sell teh jewelery at some discounted price.

 

[Hector13]

Originally posted by: Gibson486
the fee is simple. with cc, you have to wait for the money. Cash, you get it there now. The practice happens everywhere, not just asian places. Jewelry stores do it teh mos though when they sell teh jewelery at some discounted price.

it's not a matter of whether it is "simple" or not. Nobody is disputing that companies have to pay for processing credit card recievables. The question is whether or not it is illegal.

I found this link here that claims:

Visa and MasterCard prohibit surcharges, and American Express discourages them.

It also has a link to a list of states that have made surcharges on credit cards illegal (the list includes CA, CO, CT, FL, ME, MA, NY, and a couple others).

Unfortunately, though, the same page says:

Note that a cash discount is legal and permitted under all credit card companies rules. A cash discount offers a lower price for cash than credit; for example, many gasoline stations offer cash discounts.

which seems to leave a gaping loophole in the whole system. In the original poster's case, though, it seems it was a "surcharge" for using a credit card, so if you live in one of those states, it is illegal. In any case, it is against Visa and MCs rules.

 

[Hector13]

Exploring the same site i linked above, I saw this:

Visa's and MasterCard's regulations prohibit minimum charge amounts. American Express's regulations do not explicitly prohibit minimum charges, but its policy is to discourage any merchant practices that create a "barrier to acceptance." Amex does prohibit "discrimination" against the Amex card, however, so if a merchant has no minimum charge for Visa and MasterCard, the merchant may not discriminate against Amex by imposing a minimum charge.

muhaha... I think I am going to start ordering single sodas from those places that require a "$10 minimum for credit cards".

 

[Cyberian]

Originally posted by: Hector13

Originally posted by: Gibson486
the fee is simple. with cc, you have to wait for the money. Cash, you get it there now. The practice happens everywhere, not just asian places. Jewelry stores do it teh mos though when they sell teh jewelery at some discounted price.

it's not a matter of whether it is "simple" or not. Nobody is disputing that companies have to pay for processing credit card recievables. The question is whether or not it is illegal.

I found this link here that claims:

Visa and MasterCard prohibit surcharges, and American Express discourages them.

It also has a link to a list of states that have made surcharges on credit cards illegal (the list includes CA, CO, CT, FL, ME, MA, NY, and a couple others).

Unfortunately, though, the same page says:

Note that a cash discount is legal and permitted under all credit card companies rules. A cash discount offers a lower price for cash than credit; for example, many gasoline stations offer cash discounts.

which seems to leave a gaping loophole in the whole system. In the original poster's case, though, it seems it was a "surcharge" for using a credit card, so if you live in one of those states, it is illegal. In any case, it is against Visa and MCs rules.

Well now, that' kind of a Catch 22 there, isn't it?