Is it legal to charge extra for Credit Cards?

[Able 1]

American Express is out of line... It used to be $5.00 and that was out of line if you ask me. Looks like they bumped up there rates. :shock: Do any of you charge extra for it?

07-03-2009 WITHDRAW / AMERICAN EXPRESSCOLLECTION090703 -7.95

 

[John LaBarbera]

Regular price includes CC cost. What I've seen is a discount off the regular price for cash or check.

 

[Willy P]

Cash or cheque. I don't pay anyone else to get paid for my work. But then again, most of my work is commercial billing. I do use an American Express credit card for business purchases because the rewards program is pretty good, but don't be a day late paying it off.

 

[GeneMiller]

it used to be part of the agreement when you accept cc that you will not charge extra for taking them. it's probably still true. the easy way around is a discount for cash. that's what gas stations do.

Gene

 

[lancehollister]

No its not illegal to charge a proccessing fee to cover your fee. Just be fair about it.

 

[Ken Snow]

tacky in my opinion. Gas stations started dong it partly because their margin is so low and it allowed them to get price it a little lower esp when the price was so high and the credit card spread started to mean real money for them. Carper cleaning margins are very high and I don;t know any other business type that charges a premium for credit card usage.

Ken

 

[Walrus Gumboot]

I believe it is NOT legal to charge a surcharge for accepting credit cards,at least it was a couple of years ago.
VERY tacky for any business to do it anyway, imo.
Minimum charges for credit/debit use is acceptable and common.

 

[steve frasier]

the Arco AM/PM gas stations here charge .75 to use a debt card, they don't accept CC

there gas is generally cheaper price then most

 

[KevinL]

My lawyer just charged me 2% to use my cc on a $750 retainer. I didn't think it was allowed but what ya gonna do? Sue him?

 

[renegade_cowboy]

Dont accept American Express. Problem solved. I am still looking for a good CC company.

 

[ACE]

Why alienate a customer with surcharges? Take the card or don’t. I only take Visa and MC. Most people that use American Express or Discover have another backup card because there are lots of businesses that say no to there ridiculous rates. You could always tell them I don't take Discover but if you pay cash I'll give you 2% cash back Instead of 1%. Heck, I would give 5% :wink:

 

[Brian R]

Taking credit cards will generally get you a higher ticket if you promote it.
I just paid a boat load on a $750.00 ticket but you take the good with the bad.
I feel that if I tried to up the charge because of the credit card charge...I would look like the dirtbag, not the credit card company.

It's a necessary evil but at the end of the day, if you don't take credit cards you can't grow your company as easily or steadily.

You pay for Chems and gas and insurance to use those...why not pay for a service that is so Beneficial to your company?

 

[ACE]

CC get me paid faster too. Whenever a customer gives me the check will be in the mail line I say: No need I can take a credit card payment right now over the phone.

 

[Greenie]

Amex sucks. Everyone who "likes" to use their Amex card for business purchases is just feeding the fire, you would do the whole world a favor to cancel your Amex tomorrow.

If you think Me as a Supplier paying 4-5% of a sale to Amex isn't just plain stupid, you are part of the problem, cause I'm damn well gonna get my 4% "somewhere"....

If people actually sent the check off on time, we wouldn't be having this discussion.

 

[Brian R]

Amex sucks. Everyone who "likes" to use their Amex card for business purchases is just feeding the fire, you would do the whole world a favor to cancel your Amex tomorrow.

If you think Me as a Supplier paying 4-5% of a sale to Amex isn't just plain stupid, you are part of the problem, cause I'm damn well gonna get my 4% "somewhere"....

If people actually sent the check off on time, we wouldn't be having this discussion.

It's called overhead.

 

[Ken Snow]

Greenie- shop ur rate, 4.5% is waaaaay too high.

 

[Steve in Omaha]

If people actually sent the check off on time, we wouldn't be having this discussion.

Kinda like taxes. If the average joe had to cut all the checks, no way in hell could the gov spend like it does.

 

[dealtimeman]

some of my non-qualifing rates are ridicoulous but i accept cc to make my life earsier.

 

[SRI Cleaning]

Its not illegal but CC companies generally dont "allow" it. There are ways around it I'm sure.

 

[John Olson]

Legal/illegal means you can go to jail for it so not it is not illegal. It as against your user agreement as has been stated. You can offer a cash discount but to charge more for taking a card you could in theory lose your right to accept cards. It would take alot of people reporting someone to get the card company to care though

 

[Brian R]

No "Convenience Charge"?

I will get that sometimes while paying a bill over the phone.

But maybe that because it's over the phone..not because of the credit card?

Sure, there are ways to get around it.
Me? I just try to make sure that we charge enough to account for little things like this happening.

What happens if you have to use more solution than you thought on a job?
Maybe you charge for extra soil or whatever, I guess?

It does suck that I spent 20 bucks to charge 750 but whattyagonnado?

 

[Willy P]

Amex sucks. Everyone who "likes" to use their Amex card for business purchases is just feeding the fire, you would do the whole world a favor to cancel your Amex tomorrow.

If you think Me as a Supplier paying 4-5% of a sale to Amex isn't just plain stupid, you are part of the problem, cause I'm damn well gonna get my 4% "somewhere"....

If people actually sent the check off on time, we wouldn't be having this discussion.

That's my plan after I get my free flight anywhere in North America for spending $3000 in 3 months. With the card I have I can't carry a balance- that's ok as I never do on credit cards, but the reward thing with the free flight was too much to pass on. Cheques on time? Maybe in a separate universe, but not on earth.

 

[Brian R]

I wouldn't have amex again...hell they charge you an extra 5 bucks just to make them money by taking their custys cards..I don't get that.

Plus, it might as well be a checking account unless you are going for those miles and all that.


Credit cards....or loan cards (what they should be called) are good if used right but evil as hell if you end up thinking it's free money.

 

[Willy P]

I wouldn't have amex again...hell they charge you an extra 5 bucks just to make them money by taking their custys cards..I don't get that.

Plus, it might as well be a checking account unless you are going for those miles and all that.


Credit cards....or loan cards (what they should be called) are good if used right but evil as hell if you end up thinking it's free money.

Absolutely Brian. I pay mine off right on the due date and just look at it as using their money free for a month. I have one low rate visa that sits at 5.9 % but the interest on the usual run is insane. I have friends that regularly carry a balance and I just shake my head.

 

[klewis4]

I agree with the guy who said to assume everyone will pay with card and build it into your price. Your effective rate should be in the 1.75% to 3% range (after ALL fees for processing cards).

I always prefer a vendor that takes cards. I like the air miles.

 

[rick imby]

If your price is advertized as a Cash price then you can charge extra for charge card. The credit laws that were put in place when the car dealers were bait and switching with credit/no credit prices and actually make it illegal to charge extra for accepting credit cards. Your credit card acceptance contract--30+ pages of fine print--also state that. I would not expect many have read the whole contract, it is better to go clean carpets.

Rick

 

[Bob Savage]

We take Master Card and Visa. Here's how I handle the "credit card" thing.

If the customer says credit card, I tell them I would prefer a check, or cash, because the bank charges us a fee for taking the credit card. But, if they want to use their credit card, that's fine with me. I do not charge them extra if they use their credit card..

99% of the time, they write a check, or pay cash.

I know they like to use their credit cards because of all the rewards the bank gives them for using their bank credit card. It's a racket, but what you gonna' do about it?

 

[Brian R]

Most of the time I like taking credit cards over the phone just so I can get paid quicker.
Whenever they ask at the time of payment, I always say check or cash...That's if we are right there getting it.

I don't mind paying a few bucks to get my money now.
I can run a credit card right away to make sure it is good.
A check can go back a day or two after you deposit it.

Of course they can reverse a credit card charge easier so whattyagonnado?

It's situational I guess.

 

[jimn]

Imagine someone paying for a TM with their Amex card and the fees involved with doing so? We have done this in the past but will not do it anymore due to higher fees. We do accept AMEX for all "other" purchases which to me if it is convenient then we will do it.

Otherwise, TM purchases cannot be done this way. HomeSource one is a good company to get aligned with. You can offer different incentives for your customers. What this means is that they offer different programs that can allow customers to defer payments for higher ticket items such as 90 days no interest or up to 6 to a year same as cash (similar to a Home depot od Best Buy card). This would allow cleaning tickets to be much higher especially if the customer knew they had 6 months or even up to 1 year to pay for their services.

If anyone is interested in this, e-mail me privately and I will get you their information.

Amex is a good comapy to deal with and we have never had any issues but you get what you pay for.

Jim

 

[Steve Toburen]

If you can’t absorb a 2-3% fee (especially given the advantages of immediate access to funds instead of having to "bill" them plus people really do spend more if they can put it on their CC) then you better raise your prices across the board! I think the small amount of money you would earn from a credit card surcharge would not be remotely worth the negative Moments of Truth created. (And yes, I agree with the point above- it may be against the rules but it is not "illegal".)

My 3% or 2% depending on the credit card!

Steve
www.StrategiesForSuccess.com

PS Once again, it is a constant challenge to separate emotions from logic in making reasoned business decisions.