By alphacardprocess January 27, 2022
A Credit card surcharge is an additional fee charged, usually by a merchant, to the customer of the company for utilizing their Credit Card. Credit Card Surcharges are often levied on the customer because Credit Card companies charge higher fees (about 3%) than debit cards. The Merchant has to pay this fee to Credit Card companies whenever they accept Credit Card payments. Credit card surcharges are typically non-negotiable, meaning that they are not subject to negotiation or bargaining with the merchant.
When Did Credit Card Surcharges Start?
Credit Card surcharges have been around for a while now, although it has previously not been as prominent. Credit card companies charge the merchants higher fees for Credit Card transactions. Credit card surcharge was brought to the limelight when companies like American Airlines started charging Credit Card users more on every Credit Card transaction. This caused a big stir amongst consumers, and many Credit card companies were criticized for not taking necessary actions against this unfair practice of Credit cards companies.
Is A Credit Card Surcharge Legal?
Prior to April 2016 Credit card surcharges were not legal in the USA. However, Credit Card companies began charging higher fees for Credit Card transactions and this encouraged merchants to charge Credit card users extra so that they can get a share of the Credit Card fee. Some Credit card companies urged regulators to “take action” and pass a Credit Card surcharge ban. Finally, in April 2016 the Credit Card Surcharge Ban was put into effect and Credit card surcharges were made illegal in most states. However, certain merchants can still charge Credit card users an extra fee for Credit Card transactions.
How Much Is The Credit Card Surcharge?
The Credit Card surcharge amount typically varies according to the Credit card company. As an example, American Airlines charged $6 Credit Card Surcharge when Credit card payments were made. It was later reduced to $4 when multiple Credit card companies approached US regulators about Credit card surcharges.
Which States Allow Credit Card Surcharges?
As mentioned before, Credit card surcharges were made illegal in April 2016. However, Credit Card surcharge laws vary from state to state and Credit card companies often differ on the Credit Card Surcharge amount they charge. Credit card companies are allowed to charge Credit card users extra depending upon the Credit Card Surcharge laws in their respective states. Credit card surcharge laws are different for Credit Card companies that have their headquarters in the USA and Credit Card companies that don’t.
What Credit Card Surcharge Laws Apply To Foreign Credit Card Companies?
Credit card surcharge laws are not applicable to Credit cards implemented by Foreign Credit card companies. As an example, Credit Cards issued by Credit card companies like JCB and Diners Club Credit cards are not subject to Credit Card Surcharge laws in the USA. However, Credit Cards issued by Credit card companies that have their headquarters in the USA are subject to Credit Card surcharge laws.
Do Credit Card Companies Charge Foreign Customers?
Yes! Even Credit cards issued by Credit card companies that have their headquarters outside the USA are subject to Credit Card Surcharge laws. Credit card user who wish to avoid Credit Card surcharges have a few options:
- Credit cards issued by Credit card companies that have their headquarters in the USA
- Credit cards issued by Credit card companies that either don’t charge customers a Credit Card Surcharge or Credit card surcharges are much lower than Credit cards issued by Credit card companies that have their headquarters in the USA.
- Credit cards issued by Credit card companies that don’t charge Credit Card Surcharge at all. For example, Credit Cards issued by Visa or MasterCard are not subject to Credit Card surcharge laws in the USA, because Credit card companies like Visa and Mastercard have their headquarters outside the USA. These Credit cards can be used to avoid Credit Card Surcharges in the United States of America.
- Credit cards issued by Credit card companies that allow Credit card users to opt out of Credit Card surcharges. For example, Credit cards issued by Credit card companies like American Express allow Credit card users to opt out of Credit Card surcharges. Credit cards issued by Credit card companies that allow Credit card users to opt out of Credit Card Surcharges enable Credit card users to avoid Credit Card surcharges easily.
Credit Cards issued by Foreign Credit Card companies are not subject to Credit Card Surcharge laws. Credit cards issued by Credit card companies that have their headquarters outside the USA are not subject to Credit Card Surcharge laws in most states of America.
Credit cards issued by Credit card companies that either don’t charge Credit Card surcharges or Credit card surcharges are much lower than Credit cards issued by Credit card companies that have their headquarters in America enable Credit card users to avoid Credit Card Surcharges easily. Credit cards issued by Credit card companies that allow Credit card users to opt out of Credit Card surcharges make opting out of Credit Card Surcharges easy for Credit card users.