Can my employer charge customers 1% more for using American Express as payment?

Question

I think it is illegal, but I'm not sure.

Answer 1

It is against Amex policy for companies to add fees when the credit card is used.
If anyone complains, the company can get - a warning, a hefty fine and/or lose the right to accept Amex

It is also illegal in many states.

Answer 2

Echo said EXACTLY what I was going to say.

It's been illegal in most states to charge a credit-card surcharge since the 80's. Remember when gas stations used to have a "CASH" price and a "CREDIT" price. Those days are long gone... because the law specifically forbids it.

American Express is the only card I use... and I would be pissed if, as a customer, I was asked to pay another 1%. I would walk out, and I would not be your customer anymore.

Answer 3

They usually don't. American Express usually charges the store a percentage on purchases. Thats why a lot of stores have a minimal amount that can be used on Credit purchases. Some stores will charge your debit as credit to avoid higher fees. American Express has one of the highest fees, that's why a lot of stores don't take American Express.

Answer 4

I would think that as long as your employer is notifying the customers about the extra charge ahead of time, it's probably legal. It may not be moral, and a better option may be to change the store policy so that American Express is just not accepted, but that's up to him.

Answer 5

I've never heard of a percentage, but they can charge a fee because they incur a fee to be able to accept the credit card. 1% doesn't sound fair depending on the size of the purchases. I don't know what would be illegal about it as long as he/she informs the customer before the charge is made.

Answer 6

And once again Echo is correct.