New surcharge for using MasterCard/Visa now allowed

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There are a few service stations around that give rebates to their customers who pay cash or by debit card. You have $100 at the pump and pay $98 if you pay in cash or by debit card at the cashier, you pay full price at the pump.

 

Other stations associated with the AAA/CAA give cash rewards applicable to your subscription and if you pay with their own Master Card, they give you 3 cents a liter, if you pay cash/debit/gift card you get 2 cents a liter and if you pay with another credit card, they give you just 1 cent, unless you buy a gift card with your credit card to pay your fuel!
 
 
Maybe there's something in the settlement to circumvent it but won't cardbank fees be calculated on the surcharge (being part-and-parcel of the transaction total), thus somewhat negating the premise that the surcharge compensates for said fees?
 
I didn't see it in the article, but I would bet they have to conspicuously post if they're going to charge a surcharge.

MA is also unaffected by this since we're a surcharge-free state. Yes, we have some of the cash discounts on gas available to us, but not many that I've seen. The station where our regular supermarket rewards points are good offers 2 cents less for cash- probably less than 1/3 of the cost of taking the card (2% at %3.50 a gallon would be 7 cents... if they're only charged 2% for card transactions). The local BP has a discount that is closer to their actual cost of taking a card and the cash price is maybe 1-2 cents less than the Hess across the street where there's no difference in the cost cash vs. credit.

BTW, and a little off-topic, gift cards/certificates and the like also have no expiration date here in MA even if there's one printed on them.

Chuck
 
This Cheeses Me Off, Big-Time

Credit cards have always been a huge advantage to retailers, for one very important reason:

They allow people to buy stuff they don't have cash for. If there were no credit cards, retailers would have to wait for each sale until customers had money, which means they would have to do without that revenue until then. Credit cards make it possible for them to have their sale now.

Sadly, today's "spoiled brat" corporate mentality means that retailers want it all - they want the immediate sale possible with credit cards and they want to charge the customer extra when the customer does them the favor of buying right away. Every retailer I've ever worked for has seen only the expense of accepting cards - they all complain, complain, complain about it. They never admit that the customer probably doesn't have $600 cash kicking around for that designer sweater or $1800 for that big-screen TV, and might never have purchased it if they didn't have plastic.

Someone needs a good swift kick in the, uh, pecans for allowing this to happen. The only hope now - and it's a very forlorn one - is that people will cut way back on their use of cards as a protest. Which ain't a-gonna happen; We the Sheeple usually shaddup and do as we're told.
 
Exxon was always like that. In Texas we don't allow surcharges, but Exxon says it's a "Discount For Cash". What's the difference between a charge surcharge and a discount for cash?.It's apples & apples, you still end up paying more for using a credit card.

The latest scheme we have going on down here is to get a discount on your gas you have to go in the station and buy one of their "cash cards" and use that. The difference can be up to 10 cents per gallon. What gets me is on the sign out in the front of the station they advertise the "Company Card" price but if you don't have one the prices on the pump are considerably higher.

I am boycotting stations that do this. It's just adding one more aggravating step to purchasing gasoline.
 
I used to only pay cash for gas, but it is so simple to slide the card in and then pump gas instead of going inside and waiting in line to pay and then get change that I now buy gas with the card. I only fill up once a month so I don't worry about big gas bills on the card. We have some stations, maybe Exxon, that have all kinds of crap out front about cash prices, but I have not bought from Exxon since they merged with Mobil and have refused to issue a non-discrimination policy for LGBT employees every year since. That is just too damn mean.
 
Some gas stations here are now doing a lower price for cash. Including, unfortunately, my usual station. I say "unfortunately" because buying gas is--or used to be--the one thing I was sure to use my credit card for. (I mostly pay by cash. But I do want to use my credit card enough so I maintain a good credit history.)
 
Sandy's comments are good ones. If limited members could check mark posts, I would check that one.

Unfortunately, though, while credit cards do have certain advantages for retailers, the reality, I think, is that many retailers are simply greedy. They want it all, and then some. High prices. Surcharges. And, while at it, pay your employees the least you possibly can, ideally minimum wage. Get your merchandise from a third world country when possible. And so on.
 
LordKenmore:

One other thought occurs to me:

Retailers who complain about the costs of today's credit card transactions ought to try doing it the old way - with in-house charge account programs.

If they think taking VISA is expensive, they ought to get a load of the cost of running the whole thing themselves, losses on bad accounts and all.

Their whining about credit card costs never takes into account that if the customer doesn't pay for his big-screen TV, it's VISA and the issuing bank that absorb the loss, not the retailer. And it used to be that way - if a retailer gave an idiot credit, he ended up eating the loss himself.
 
Here in California I understand that Visa/Mastercard do not allow merchants to charge less for cash purchases - but this has not prevented a number of gas stations to have two-tier pricing. And many, including Arco, charge more for using a bank debit card, as well.

I usually pack cash when I buy gas from a local off-brand station, and most of the time I'm able to estimate a round number to fill the tank and therefore don't have to go back for change.
 
I have been transitioning to gift cards and not using my credit cards so much for purchase of food and gas. Seems to be working out well for me.
 
I've heard that coming soon there will also be surcharges for using debit cards. But if it's a Visa debit card they won't allow it.

The link leads to the rules on the Visa website. It also mentions states that prohibit and the way each state law is written.

It looks like retailers are following the lead of the airlines, debundling everything and put a surcharge on things that they feel the consumer should pay for, like using a credit card.

For example, I use a credit card for my gasoline. This way I see what I am spending every month. Fortunately Texas won't allow a surcharge, but they DO allow a discount for cash. I think we'll see "discount for cash" coming to our grocery stores too. All this does is providing additional income for the retailers and raises the cost of living index.

 
Retailers depending upon their size and clout

Pay varying amounts of fees and surchages when a customer uses a credit, charge or debit card. For some transactions the fees/surcharges can eat into whatever profit was made from the sale especially if it is a small one. To counter this though most all merchant accounts forbade it, shops had minimum set amounts for credit/charge card use. For instance both local heatlh food stores in our area have such a minimum set at about $6.

Allowing merchants to charge customers a fee for using a credit/charge card allows them to either recoup some of their own fees, or steer customers to paying with cash or debit cards which in the case of the latter do not have transaction fees. In fact most supermarkets or shops here the card readers default to "swipe"/debit card. You have to push "cancel" and then the screen comes up for credit/charge card or other methods of payment. IIRC this is because even some debit cards charge merchant transaction fees if the card is used like a credit card, that is swiped without entering a PIN afterwards.

Personally we NEVER use our ATM card as a "debit" card, but as a charge. Am not risking my PIN to scammers, hackers or card skimmers. For our bank at least one can see pending charges so if something looks odd or unfamiliar you can speak to the bank before it actually posts.

Merchants like everyone else have been caught in the bind of the now mostly cashless society. People pay for nearly everything with credit or debit cards. Part of the reason is convenience and ease. I mean it is so wonderful to pay exactly what is owned and not worry about having to carry change/coins all over the place.

The other popular reason persons use their charge/credit/debit cards is to rack up points. For some cards like American Express you almost have to run every daily purchase on the card to build up points, which many in our area (NYC) do if for nothing else AMEX acts like their bookeeper and allows them to see where their money goes. When the bill comes you pay it all off so there isn't any interest added, rather like using cash or a debit card.

Of all the cards merchants often hate Amex the most because it's fees are very high. Also Amex has some very strong purchase/buyer protections that can have a shop eating the cost of a return or defective item because Amex reversed the charge.
 
"even some debit cards charge merchant transaction fees if the card is used like a credit card"

I know they say "no surcharges for debit cards," but one concern I've had is that debit cards processed as credit might well be hit with the same credit card surcharges. Maybe I'm wrong, but for now, I'm assuming this is the case. The teller I talked to at my credit union did not know the ins-and-outs of the new policies, but she did say I was probably wise to be cautious. Processed as credit, it gets treated in processing as a credit card.

Like Launderess, I tend to be cautious about PIN transactions with a debit card. It's said by some experts that one has more customer protections by using the Visa network.
 
One advantage of credit cards, or processing debit as credit, is that some stores in my area make it as easy as swiping the card through the card reader, and you are on your merry way. Store policies vary, but if the amount you spend is under a certain amount, no signature is needed.
 
As for gas stations, one way to get the cash price while using a credit card, at least at some stations in my area, is to use the gas stations own credit card. This is not an avenue I've explored for a number of reasons, but if I bought gas more than I do, and wanted maximum convenience, it would be worth serious consideration.
 
MasterCard & Visa usually charge 3-5% per cent(depending on the agreement with the credit card processor) and 2-3% for debit cards. Amex can charge a 5-6% fee.

In our area if you press the button for "Credit" on a retailers card machine and then swipe a debit card the machine automatically will recognize this and prompt you to enter your pin code. Then when you look at your receipt it will indicate a debit purchase. Walmart is one place that does this as well as most grocery stores. Hell, if you write a check at Walmart it's processed as a debit transaction.
 

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