Is it legal to charge a convenience fee for credit/debit transactions?

Question

The apartment that I rent charges a 3% convenience fee for any credit/debit transactions. I don't understand how they are allowed to do this? Is it legal and why do they charge this fee?

Answer 1

murrayc, SmartyPants and DaMan are correct.

Adding a fee is against Visa, Master Card and Amex policy.

Adding a fee is illegal and prohibited in some states.

Illegal in CA. CO. CT. FL. KS. MA. ME. NY. OK. TX. (and maybe other states also.)


When you use a debit card that has the Visa or MC logo, as long as you do not enter a pin number it would be like using a regular Visa or MC and subject to the same rules.

Send your complaints to your card company and more importantly send the complaints to:

VISA:
Visa USA
Consumer Relations
P.O. Box 8999
San Francisco, CA 94128

Or 1-800-VISA-911


MasterCard:
MasterCard International
Public Relations
2000 Purchase Street
Purchase, NY 10577

American Express:
American Express
Customer Service
PO Box 297812
Ft. Lauderdale, Fl 33329-7812

Answer 2

Well, are you paying with a debit card that has funds coming out of a checking account or a credit card that is a line of credit that charges monthy interest?
Debit cards - at this time anyone taking debit cards can assess a transaction fee on top of the purchase price. This must be a seperate line item on the reciept. They must be setup by the bank to do this.
Credit cards - it is against Visa regulations to charge a fee for a credit card transaction. It is up to the merchant taking the card to eat the 3% or what ever service fees it cost to do business.
If you think they are illegally charging you, see if you can find out who they process their credit/debit cards through. Or dispute the charges at your bank stating that they added 3% to the rent.
Be prepared to pay rent with cash that month just in case they freak out.

Answer 3

It's perfectly legal, and some places are beginning to do this now. The reason is because credit card companies charge businesses to accept their credit cards. Most companies just add in this fee to product prices, but a few only charge it to credit card users. Just imagine if everyone's rent went up 1%, and there would be no fee for these transactions. I had the same problem, so I got a 1% cash back credit card, and made some of the money back.

Answer 4

When you use a credit or debit card the person who you are paying (in this case the apartment complex) is charged a transaction fee. So they have every right to pass that cost on to you. It's completely legal.

Answer 5

the 3% fee is probably a fraction of the fee your landlord is paying to credit card company.
the best way to avoid that fee is to give him a
money order or personal check.

Answer 6

Most credit card companies say that you cannot charge additional for the use of their card or set a minimum purchase amount.

Answer 7

<> Just because something it legal doesn't mean it's right. <> There's a reason you can't spell 'assume' without '***'. People who assume too much end up making asses of themselves. < murder, how come?>> Doesn't make sense, does it - and yet, there you are advocating people merely ASSUME the government is right! <> WRONG! <> Ad hominem attacks hurt your credibility. Perhaps Marc, like me, doesn't see too much in the way of credibility when reading your question. < is NOT murder.>> The term "fetus" literally means "the young in the womb". The fetus IS a living human being. Life begins at conception, not birth nor some arbitrary point in between. Therefore, every abortion constitutes the murder of an unborn human being. <> But the fetus IS human. Therefore, abortion IS murder. < and stupid imagination.>> What's so narrow minded about acknowledging the unborn for the living human beings they are? Since you're unable to do that, wouldn't that suggest your mind is in fact more narrow than mine? < person NOT two.>> That just goes to show how schizophrenic human institutions can be - and you want to ASSUME such an institution (the government) is right.

Answer 8

They are in violation of merchant agreements, if you like, you can report them to Visa or Mastercard headquarters.

Look up the number on google.com

Answer 9

they can do what they like'in some pubs in england they charge £5.00 just to take cash out!!