August 20, 2024
Are merchants allowed to profit from credit card surcharges?
Dear Consumer Ed:
Is a merchant allowed to charge a credit card surcharge in an amount that is greater than the fee it is paying for processing, thus making it a profit center?
Consumer Ed says:
No. For credit card transactions, merchants are permitted to charge customers a surcharge to recover the cost of the processing fee the merchant must pay to the card issuing company (Visa, Mastercard, American Express, etc.). The surcharge amount is typically between 2% to 3% of the purchase price. Merchants cannot charge their customers a surcharge fee that exceeds the amount the merchant pays to accept the card.
Any merchant that implements a surcharge for credit cards must provide notice of the surcharge prior to the sale and disclose the exact amount of the surcharge on customers’ receipts.
If you believe a merchant is improperly charging fees, failing to disclose what it is charging, or otherwise engaging in false or misleading sales practices, you can file a complaint with the Georgia Attorney General's Consumer Protection Division by visiting consumer.ga.gov or calling 404-651-8600.
Submit your own question to Consumer Ed. Remember…we do not give legal advice. Always consult a lawyer about legal issues.