Ayesha
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Thu May-04-06 01:16 PM
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Is it illegal to charge more for using a credit card? |
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The 76 station on Sepulveda and Devonshire in Granada Hills (LA area) has a posted sign that they charge more for using a card than paying cash. Isn't that illegal, and where can I report these SOBs? Any tactic to gouge us more for gas seems to be acceptable these days, and it's pissing me off.
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ohiosmith
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Thu May-04-06 01:17 PM
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eyesroll
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Thu May-04-06 01:17 PM
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2. It's against Visa/Mastercard rules, but it's not illegal. |
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You can call Visa/Mastercard and report them, but I have no idea what department within V/M that would be.
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serryjw
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Thu May-04-06 03:49 PM
Response to Reply #2 |
26. I sold merchant services |
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We recommend merchants to DISCOUNT for CASH, NOT charge MORE for CC. I think that it's more logical anyway
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Jacobin
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Thu May-04-06 01:18 PM
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3. No. CC companies charge merchants about 3% |
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So the store makes 3% more when you pay with cash
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warrens
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Thu May-04-06 02:45 PM
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18. Actually, they pay banks 3 percent to count their cash deposits |
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So it's more or less a wash. Small merchants, however, pay a lot more than 3 percent. That's Wal-Mart's rate, more or less. Risky merchants, as most small retailers are classified, pay up to 8 percent. Online, they pay as much as 20 percent because of the fraud numbers.
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Systematic Chaos
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Thu May-04-06 01:18 PM
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If the policy is clearly posted then they can get away with it.
Back in 1987 I worked for a Chevron station that offered a cash discount on gas. If you paid with credit you were charged the full price but if you paid cash you got 5 cents off per gallon or something. It was the policy of Chevron, not the independent owner of the station.
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tandot
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Thu May-04-06 01:21 PM
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5. I pay a $0.45 fee if I pay with my Debit Card - which is like cash |
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but nothing when I use my credit card. They make up their own rules. They tell you about it and leave the choice up to you.
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Xithras
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Thu May-04-06 02:43 PM
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17. That's why I don't buy from AM/PM anymore. |
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They charge 45 cents to use your ATM card around here. In my car, that basically works out to 3 extra cents a gallon on a fillup from an empty tank. I found that Chevron and AM/PM are the only major retailers around here that charge for debit card usage, so I don't buy from either of those companies anymore.
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uppityperson
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Thu May-04-06 01:22 PM
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6. It costs a company to take credit card payments, they can charge for it |
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not nice, but they can charge to recoup their costs in offering credit card services.
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KyndCulture
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Thu May-04-06 01:22 PM
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7. Most people follow the CC rules. This is against the rules. |
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But most sane business owners give you a 3% discount if you use cash. They are just being backwards greedy bastards.
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LostinVA
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Thu May-04-06 01:23 PM
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8. Perfectly legal -- I've seen it at other places |
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And, it's more of a cash discount.
Merchants also have to pay charges on every debit/credit card transaction.
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Kingshakabobo
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Thu May-04-06 03:41 PM
Response to Reply #8 |
25. I think that is the trick... |
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Edited on Thu May-04-06 03:42 PM by Kingshakabobo
...it has to be worded as a "discount for cash", not a surcharge. Same difference if you ask me.
I guess it's fair since the merchant has to pay. On the other hand, credit card use is said to increase the merchant's receipts because people spend more when they use plastic.
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SouthPasadenaDem
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Thu May-04-06 01:29 PM
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Here in California it is illegal to add on a surcharge for the use of credit cards in payment. The credit card price has to be the same price as the cash price.
However, if they are offering a "cash discount" then it may be legal.
The law firm I work for (here in Los Angeles) had a very similar class action suit against Thrifty Oil company several years ago.
Give me more details.
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rinsd
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Thu May-04-06 01:46 PM
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10. Not illegal, the gas stattion has to pay CC fees too (nt) |
Rosco T.
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Thu May-04-06 02:04 PM
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11. Report them to Mastercard/Visa .... |
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.. it's ABSOLUTELY against the merchant rules. If ENOUGH people complain, they will get their merchant account yanked.
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guruoo
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Thu May-04-06 02:17 PM
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12. I hate it too, and I think it's bad business, but ... |
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Edited on Thu May-04-06 02:25 PM by guruoo
the alternative effectively leaves cash customers burdened with paying for a service they never benefitted from.
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lonestarnot
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Thu May-04-06 02:19 PM
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13. ewww love your avatar! |
Bridget Burke
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Thu May-04-06 02:30 PM
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14. The sign should read "Discount for Cash Payment".... |
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Spec's Liquor in Houston offers a % discount if you pay cash--or with your Debit card. Spec's is a chain but their Downtown store is a Houston landmark. (I'm not kidding.) They carry a truly massive array of wines, beers & liquors. And their large food department is impressive as well. Prices are quite reasonable, even without the discount.
This MUST be legal in Texas. Liquor stores are highly regulated.
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gkhouston
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Thu May-04-06 02:33 PM
Response to Reply #14 |
15. and Spec's has done this for donkey's years. |
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Edited on Thu May-04-06 02:33 PM by gkhouston
Great place. :thumbsup:
Used to be that gas stations offered a cash discount, but no more. (Yeah, and I could fill the tank for $10) :cry:
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Bridget Burke
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Thu May-04-06 02:55 PM
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21. I especially like the "free samples".... |
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At certain times, those promoting various wines or liquors offer tastes to Spec's customers.
"I produce 3 different tequilas. Would you like to sample them, Senorita?"
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gkhouston
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Thu May-04-06 02:59 PM
Response to Reply #21 |
23. yeah, I'll sample them |
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but only on those long trips. Sometimes you need time to sober up! :rofl:
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warrens
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Thu May-04-06 02:46 PM
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19. It's legal but against CC rules |
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They probably got grandfathered in when the rules went into effect. Either that, or their merchant acquirer is just turning a blind eye.
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Xithras
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Thu May-04-06 02:37 PM
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16. Just to echo the others and clarify the reasoning. |
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Edited on Thu May-04-06 02:38 PM by Xithras
V/MC doesn't allow retailers to charge extra for using credit cards, so they can't have a fixed "fee" that they're attaching. They can, however, offer discounts to cash customers.
Yes, we all know it's the same damned thing, but the way they're presenting it really matters. Retailers get charged extra when you use a credit card, and some would prefer to just pass the cost on to you. If it's a low volume or small store working with tight margins, they'll probably be more apt to charge it. Most high volume retailers just eat the cost with the understanding that the additional expense is more than offset by the increased business that CC's generate.
Remember, the RETAILER only makes a few cents a gallon on the sale. With the price of gasoline nowadays, people are probably doing a lot of short tanks. If a retailer is only making 10 cents on a gallon, and someone wants to charge $10 worth of $3.25 a gallon gas on a credit card with a 30 cent usage fee, that retailer will actually LOSE money by selling to that customer. So the retailer charges a higher rate for CC customers to make sure that doesn't happen.
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dysfunctional press
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Thu May-04-06 02:47 PM
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20. no. it used to be fairly common at some gas stations. |
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when your margins are razor thin, every few cents on a transaction counts...accepting credit cards isn't free for the merchant.
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Gormy Cuss
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Thu May-04-06 02:56 PM
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22. No to credit card, yes to ATM in California |
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As SouthPasadenaDem pointed out upthread, it is illegal to surcharge credit card purchases in this state. I believe that it's also illegal in a few other states, mostly in the Northeast. They can offer a discount for cash but they can't charge more for credit cards.
link to state agency FAQ at abclocal.go.com/kgo/story?section=News&id=2482958 Snip from it:
How does a station advertise a discount for cash payment? They post the price per gallon from which the reduction is to be taken, the amount of discount and the cash price. The condition of the discount cannot be less than one-third the size of the price numerals.
Can a station add a surcharge fee for the use of a credit card? No. They cannot charge a surcharge according to the California Civil Code Section 1748.1(a).
Can a station charge a transaction fee for the use of a debit card? Yes. However, the fee needs to be posted at the card reader.
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aikoaiko
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Thu May-04-06 03:09 PM
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24. Gas stations may be doing it to get people inside the food mart area too |
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A lot of people pay at the pump with credit cards and don't go inside anymore so the stores aren't getting the opportunity to sell you expensive soda and candy.
Now with gas prices so high, people are more willing to save 2 or 3 dollars on a fill up, but will spend more inside.
Its rather clever I think.
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