Egads! Visa and Mastercard: additional 13% charge??!

[DrPizza]

I just did a quick search of auctions for this weekend. I noted that one of the local auctioneers is now charging 13% for using Visa or Mastercard! Holy Cow! I complained last year about their charge (a certain percentage) - they claimed "it wasn't to cover fees, it was because of the extra paperwork involved." So if I buy an item for $3000 and use my Visa debit card, I'd have to pay them an extra $390 for the paperwork??!

I know that regular merchants can't do this. Is there anything preventing auctioneers from doing this though?

Link to where I found an ad for an upcoming auction:
here

 

[mugs]

They actually can charge a surcharge if they phrase it as a cash discount... but it's kind of hard to call it a cash discount when the price is determined by an auction... I'd just pay cash and avoid the problem altogether.

Edit: Are you sure the 13% isn't just the 10% "buyer's premium" + 3%?

 

[Fritzo]

What paperwork? They get charged like 1% of the transaction, and everything is supposed to be done electronically. That guy's scammin'

 

[KarenMarie]

Contact the credit card company and let them know what is going on. While each state makes its own laws regarding surcharges, I would hope the CC companies will think this is a bit extreme and step in.

 

[DrPizza]

Yes, of course I'd pay with a regular check or something to avoid this fee. Ridiculous fee though!

 

[DrPizza]

Originally posted by: KarenMarie
Contact the credit card company and let them know what is going on. While each state makes its own laws regarding surcharges, I would hope the CC companies will think this is a bit extreme and step in.

Someone posted a link in a recent thread to where to report such things to (Visa?) - anyone recollect the thread? (since search is fubared.)

 

[DrPizza]

Originally posted by: mugs
They actually can charge a surcharge if they phrase it as a cash discount... but it's kind of hard to call it a cash discount when the price is determined by an auction... I'd just pay cash and avoid the problem altogether.

Edit: Are you sure the 13% isn't just the 10% "buyer's premium" + 3%?

It might be. But, I wouldn't have gotten so irritated last year if it was just a 3% fee - I recall being stunned by the fee at that previous auction I went to. As a result, I generally avoid his auctions, (and will this weekend) - but when there are no other alternatives, I'm stuck - especially if there is an item I'm seeking.

 

[mugs]

Originally posted by: DrPizza

Originally posted by: KarenMarie
Contact the credit card company and let them know what is going on. While each state makes its own laws regarding surcharges, I would hope the CC companies will think this is a bit extreme and step in.

Someone posted a link in a recent thread to where to report such things to (Visa?) - anyone recollect the thread? (since search is fubared.)

It was a travel agent that was doing it in that thread, but searching for travel didn't give me anything useful.

 

[Fritzo]

This might help:

http://www.gofso.com/Premium/LE/06_le_ic/fg/fg-merchants.html#MORE:B

 

[KarenMarie]

From THIS website:


EXTRA CHARGE FOR USING A CREDIT CARD

Some merchants seek to impose a service fee for all credit card purchases.

When a merchant gives a credit card slip to the credit card company or bank for processing, a percentage of each purchase?usually 1.5% to 5% of the purchase amount?is deducted. This "merchant discount fee" helps pay for the bank's services and for the credit card system. By charging extra for credit card use, the merchant passes the discount fee on to customers.
MORE MORE: Since 1984, when a Truth in Lending law ban on surcharges expired, some states have enacted laws prohibiting surcharges; see States That Prohibit Credit Card Surcharges.


Visa and MasterCard prohibit surcharges, and American Express discourages them. Amex does prohibit "discrimination" against the Amex card, however, so if a merchant accepts Visa and MasterCard (and cannot impose a surcharge under those companies' rules), the merchant may not discriminate against Amex by imposing a surcharge.
TIP TIP: Any merchant that accepts American Express cards and also accepts Visa and/or MasterCard may not charge consumers a surcharge on Amex purchases.

Surcharges invite numerous abuses by retailers, including bait-and-switch tactics. There are no laws on how and when surcharges must be disclosed, making it difficult to figure out the total price of an item. Travelers often find it difficult to get out-of-state checks accepted, and should not be penalized for using credit cards. Further, credit card acceptance usually produces higher sales for merchants, offsetting the cost of processing credit card transactions.

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. While this may merely be a loophole, it is permitted. In addition, there are a few state governmental agencies, including state tax offices and motor vehicle departments, that are permitted to charge surcharges due to state laws that do not permit them to pay discount fees. However, retail merchants may not impose surcharges.

 

[KarenMarie]

VISA
Dollar Minimums and Maximums
Always honor valid Visa cards, in your acceptance category, regardless of
the dollar amount of the purchase. Imposing minimum or maximum purchase
amounts is a violation.

No Surcharging
Always treat Visa transactions like any other transaction; that is, you may not
impose any surcharge on a Visa transaction. You may, however, offer a discount
for cash transactions, provided that the offer is clearly disclosed to customers
and the cash price is presented as

MASTERCARD
9.12.2 Charges to Cardholders
A merchant must not directly or indirectly require any MasterCard cardholder
to pay a surcharge or any part of any merchant discount or any
contemporaneous finance charge in connection with a MasterCard card
transaction. A merchant may provide a discount to its customers for cash
payments. A merchant is permitted to charge a fee (such as a bona fide
commission, postage, expedited service or convenience fees, and the like) if
the fee is imposed on all like transactions regardless of the form of payment
used.
? A surcharge is any fee charged in connection with a MasterCard transaction
that is not charged if another payment method is used.
? The merchant discount fee is the fee the merchant pays to its acquirer to
acquire transactions.
9.12.2.1 Charges for Unique Transactions
A merchant is permitted to charge a fee for a unique transaction in accordance
with the Standards found in Chapter 4 of the GCMS Reference Manual.
9.12.3 Minimum/Maximum Transaction Amount Prohibited
A merchant must not require, or post signs indicating that it requires, a
minimum or maximum transaction amount to accept a valid MasterCard card.

 

[DrPizza]

is an auctioneer a "merchant"?