i heard that it is illegal to charge someone a different rate, or to add in extra charges if someone pays for something with a credit card VS cash or VS personal check. anyone ever hear this, or know if it's true? i'm sure it varies from state to state, but any info is appreciated.
for example, i'm buying metal from a distributor, and they want to charge me an extra 3% to use a credit card as opposed to cash or check, because the vendor is telling me they LOSE 3% to the credit card companies. not normally a big deal, but this is over $100,000 worth of metal!!
thanks in advance.
2006-11-07 03:11:52 · 6 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance
It is doubtful that this is illegal. This would be something governed by your state law, not federal law -- so without knowing what state you are doing business in, it would be difficult to determine an answer.
Sales and purchasing are effectively negotiable contracts -- so a change in price for different terms should be within the scope of the negotiation.
As for your seller, it is accurate that their credit card processor will take 3% of the sale. I worked in retail accounting for several years, and this falls within the typical rate structure.
2006-11-07 03:18:14 · answer #1 · answered by Skelebone 4 · 0⤊ 0⤋
The reason the distributor is charging an extra 3% is that the credit card company is actually charging them to use the credit card.
2006-11-07 11:18:01 · answer #2 · answered by katherine c 1 · 0⤊ 0⤋
The seller has to pay a percentage for the use of the credit card machines as well. They try to aborb the cost by passing it on the the users. An example is many gas stations will state right on the pumps that they offer a discount on the gas if paid for by cash.
2006-11-07 11:18:43 · answer #3 · answered by bonjovigroupie 3 · 0⤊ 0⤋
it is not illegal...
i work in a small business and we do not offer the use of credit/debit cards because it would cost US money to offer that service....we choose not to do it so that we don't have to increase or prices for credit users by 3% or more
2006-11-07 11:20:37 · answer #4 · answered by SNAP! 4 · 0⤊ 0⤋
Ive gotten my nails done at a salon, and for using your Debit, they charge an extra 4% or so.
I thought this was wrong....
Im not sure though if its illegal....!!! I would think it is!
2006-11-07 11:14:48 · answer #5 · answered by elena 2 · 0⤊ 0⤋
Nope....it's totally legal.
You have the option of changing your payment method.
2006-11-07 11:20:15 · answer #6 · answered by Jack 6 · 0⤊ 0⤋