Quick Answer: Can You Charge A Convenience Fee For Credit Cards In California?

A convenience fee is not a surcharge

“We believe that surcharging credit card purchases is harmful to consumers,” said Faust.

Surcharges are also illegal in 10 states: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas, plus the U.S.

territory of Puerto Rico.

Is it illegal in California to charge a credit card fee?

In 1985, California passed a law that prohibited merchants from adding a surcharge (an extra fee) when customers pay by credit card instead of cash. That law does allow merchants to give customers discounts for paying by cash, check, or debit card, as long as that discount is offered to all customers.

All merchants are allowed to charge their customers a convenience fee for using a credit card if the customer is using a non-customary payment channel. The practice of always charging customers a fee for credit card payments, no matter how the transaction takes place, is called a surcharge.

What states is it illegal to charge extra for credit card?

Eleven states—California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas—and Puerto Rico have laws that prohibit merchants from charging consumers with surcharges on credit card transactions.

Convenience fees and surcharges are legal, as long as they stay under a certain percentage of the purchase price and aren’t assessed in a state that bans them.

No surcharge can be applied to debit card transactions. A court settlement in January 2013 ruled merchants can impose a surcharge (outside of the states that don’t allow credit card surcharges). Merchants can pass the same fee onto customers that they pay the card network per transaction.

Can you charge extra for using a credit card?

The short answer is yes. Starting in 2013, it became legal to charge customers extra for using a credit card. Retailers can also require a minimum purchase amount when you use credit cards. But merchants need to follow specific rules when adding credit card surcharges.

What is the difference between a convenience fee and a surcharge?

You cannot charge a convenience fee for recurring payments. Surcharges are a bit different. Surcharges are fees that a retailer adds to the cost of a purchase when a customer uses a charge/credit card. A surcharge is a percentage of the value of the sale.

Why is convenience fee charged?

Convenience fee can also be referred to as Internet handling fee. The idea behind convenience fee is to charge for the ‘privilege’ you get of using alternative payment options. It is also to cover the payment processing charges and what payment gateways have to pay banks for online transactions.

Is it illegal to charge extra for using a debit card?

Credit and debit card surcharges are now illegal, but you might still have to pay. It’s now illegal to charge an additional fee for paying by credit or debit card, but some companies have already found a way to keep charging customers.

What’s this charge on my credit card?

In many cases, a mysterious charge on your credit card statement is a mistake made by the merchant. If you find that a purchase you made is showing up as a different amount than what’s on your receipt, contact the merchant immediately. With a proof of receipt, they should be able to fix the charge.

Do all gas stations charge more for credit cards?

So, yes, gas stations (and all other retailers) are permitted to charge you extra for using a credit card.

Why are there 2 extra payments on my credit card?

The charge is what merchants are supposed to pay to banks for the card payment infrastructure used for the transactions. ET looks into the details around the charge and why is it that customers end up paying 2% extra on card payments at some retail outlets. 1. Cards can be of two major types, debit and credit.