Use cash where you can
The easiest way to avoid card surcharges is to pay by cash. While businesses can charge a surcharge for paying by debit or credit cards, they can't charge a surcharge for paying by cash.
To avoid a credit card surcharge, you can pay with alternative methods such as cash, debit cards, or mobile payment apps. Some businesses also offer discounts for non-credit card payments, providing an incentive to choose other payment options that help avoid credit card surcharge.
A surcharge is an extra fee beyond the original price of a good or service. Consumers pay surcharges to offset the higher cost of a certain product or fee. For example, a farming company may have an extra surcharge on their produce to cover the cost of the labor used to harvest the food.
Use a different payment method.
Merchants often charge convenience fees or surcharges when credit cards aren't a standard payment method. If you have a rent, utility or tax bill, consider paying by check or electronic transfer instead.
Use Alternative Payment Methods: Opt for traditional alternative payment methods like cash or checks, which often do not incur convenience fees. Choose Fee-Free Payment Options: Some businesses offer fee-free options for online payments or bill pay. Check for these alternatives.
A surcharge is not a convenience fee. A convenience fee is levied by a merchant for offering customers the privilege of paying with an alternative non-standard payment method. Merchants can process convenience fees in all 50 states. A surcharge is levied by a merchant for customer purchases made with a credit card.
2024. Effective July 1, 2024, surcharging is once again illegal in California. CA Senate Bill 478 was signed by Governor Gavin Newsom on October 7, 2023 to amend the Consumer Legal Remedies Act (CLRA), essentially banning all junk fees and drip pricing. Surcharging is included in this bill.
You can contact the seller directly to try to fix the issue, or you can “dispute the charge” with the company that issued your credit card. For example, you can dispute a charge that you did not authorize, that is for the wrong amount, or that is for something that the seller didn't provide as agreed upon.
There is no prohibition for credit card surcharges and no statute on discounts for different payment methods. Merchants can impose a surcharge as long as it doesn't exceed the cost of the merchant's processing fee. Merchants may offer discounts for payment by cash, check or other methods unrelated to credit cards.
Businesses incur costs for processing certain card payment types. Some businesses include these costs in the prices they charge for their products. Others pass the costs on as a surcharge for paying with the card.
Tap-to-pay is less vulnerable to credit card skimming and other types of fraud since the card itself never touches the payment terminal for a transaction. “Skimming” involves using a hidden device to read and translate credit card data when a credit card is swiped to make a purchase.
The court issues a judgment, which allows the state to collect unpaid surcharges through involuntary means. The judgment amount (surcharge debt) must be paid before personal property can be transferred or sold. Judgments include a collection cost and interest charges calculated on the judgment balance.
The No-Surcharge Rule (NSR). The NSR means that a merchant charges at most the same amount for a payment card1 transaction as for cash. If the merchant decides to apply a discount for payments in cash that discount cannot be extended to any specific card brand.
The golden way to avoid surcharges is to pay cash. While businesses can charge a surcharge for paying with a credit, debit or prepaid card, they can't charge you more than the advertised price if you're paying in cash.
What are claims and defenses? Claims and defenses are any valid reasons you have for not paying a certain credit card charge. They include billing errors, unauthorized charges, and claims that goods or services were misrepresented, defective, or not delivered.
Surcharges are normally added to the price of goods and services at the point of sale on behalf of the government. Surcharges allow businesses to indirectly pass costs on to the consumer by listing a charge separately from the cost of the good or service.
No, surcharging for debit card transactions is prohibited under the Durbin Amendment of the Dodd-Frank Wall Street Reform and Consumer Protection Act. This applies to all types of debit cards, including prepaid cards.
How to avoid a convenience fee. Convenience fees for online or phone payments can easily be avoided by utilizing alternative payment methods. One option is to use cash, check, or an ACH transfer. These methods typically do not incur convenience fees, making them a cost-effective alternative.
A surcharge is an additional fee that a business imposes on a customer when they use a credit card for payment. This fee helps cover the costs associated with processing credit card transactions (such as merchant fees or payment gateway charges) by passing them down to the consumer.
Most often, fees are the payment one makes in return for service, such as mowing a lawn or drafting a will. Sometimes more than one fee is charged for a service. Governments (local and federal) charge fees for licenses, such as a driver's license or a passport.
While surcharging is generally legal in most U.S. states, it is prohibited or restricted in a few. Businesses should always consult local laws, as regulations vary, and compliance requires notifying customers and card networks before implementing surcharges.
If most of your customers pay with a credit card, a surcharge effectively increases your prices, putting your business at a competitive disadvantage. For businesses that compete in a price-sensitive market, surcharging can hurt your bottom line because customers may decide to buy from your competition.