[Eg_cruz]

Last week I was charged a 3% fee because I used my bank debt card instead of cash or credit card.
So I had to look this up because I know that the debit card fees are very low if any and yes I did I checked and the fee to use a debit card for the merchants is $.05-$.21 not 3%.
I went and looked a little further and found out they are not allowed to charge a fee on a debit card or a prepaid card per agreement with a debit card holder companies
When I called and questioned it, they told me I was wrong that they’re allowed to per Florida law so again I went and research again, this time a little deeper.
Yes, in Florida they can charge 3 to 4% on credit card transactions only not on debit cards or prepaid cards
I found that you can report them through the state of Florida and through your debt card holder.
I get that it’s only a 3% fee but why do I have to pay them more than what they have to pay if they want to charge me $.21 per transaction fine but why are you charging me 3% when they don’t get charged 3%
To me, this is the restaurants and merchants who charge these fees on debit cards, they’re just ripping you off and we just have been paying it with no questions asked
So I will be reporting any restaurant or merchant that charges me a fee on a debit card.
Especially Visa debit it is in their rules with the merchants that they are not allowed to charge a fee no matter what

Whatever happened to it’s the cost of being in business?

[Taltarzac725]

How to Protect Yourself: Credit Card Surcharges | My Florida Legal


This may be of help.

[CarlR33]

Was the fee a line item charge or hidden in the other costs?

[Pugchief]

Originally Posted by Eg_cruz

the fee to use a debit card for the merchants is $.05-$.21 not 3%.

This information is misleading if not flat-out wrong.

Using a debit card in a PIN based transaction costs the merchant less than using a credit card. But if you sign instead (virtually all restaurants), the merchant is charged the same rate as a credit card.

Also, while the rate varies based on average monthly volume, we were paying $0.50 to $0.75 for debit card PIN transactions, not $0.05.

You should also know that PIN based debit card transactions are more secure (thus the lower fee) and generally speaking, credit cards offer better protection against fraud. I only use my debit card for ATM withdrawals, and credit cards for any purchase.

The sad reality is that more and more merchants are tacking on a fee to use cards. It's understandable when you realize they are losing ~3% on every transaction, which over time really adds up. $10,000 in monthly volume means losing $3600+ each year. The real question is why banks are charging merchants 3%+ when the actual cost to them IIRC is less than 1%. Even with a profit built in, 3% is ridiculous. But the extra fees help pay for rewards cards that offer cash back or airline miles.

[golfing eagles]

Originally Posted by Eg_cruz

Last week I was charged a 3% fee because I used my bank debt card instead of cash or credit card.
So I will be reporting any restaurant or merchant that charges me a fee on a debit card.
Especially Visa debit it is in their rules with the merchants that they are not allowed to charge a fee no matter what

Whatever happened to it’s the cost of being in business?

Restaurant charging urge fee of 2 1/2 to 3%

I'm glad to see someone succumbed to the URGE to report them

[kansasr]

Originally Posted by Pugchief

This information is misleading if not flat-out wrong.

Using a debit card in a PIN based transaction costs the merchant less than using a credit card. But if you sign instead (virtually all restaurants), the merchant is charged the same rate as a credit card.

Also, while the rate varies based on average monthly volume, we were paying $0.50 to $0.75 for debit card PIN transactions, not $0.05.

You should also know that PIN based debit card transactions are more secure (thus the lower fee) and generally speaking, credit cards offer better protection against fraud. I only use my debit card for ATM withdrawals, and credit cards for any purchase.

The sad reality is that more and more merchants are tacking on a fee to use cards. It's understandable when you realize they are losing ~3% on every transaction, which over time really adds up. $10,000 in monthly volume means losing $3600+ each year. The real question is why banks are charging merchants 3%+ when the actual cost to them IIRC is less than 1%. Even with a profit built in, 3% is ridiculous. But the extra fees help pay for rewards cards that offer cash back or airline miles.

Your math is WAY off

[Eg_cruz]

Originally Posted by CarlR33

Was the fee a line item charge or hidden in the other costs?

Line item

[Eg_cruz]

Originally Posted by Pugchief

This information is misleading if not flat-out wrong.

Using a debit card in a PIN based transaction costs the merchant less than using a credit card. But if you sign instead (virtually all restaurants), the merchant is charged the same rate as a credit card.

Also, while the rate varies based on average monthly volume, we were paying $0.50 to $0.75 for debit card PIN transactions, not $0.05.

You should also know that PIN based debit card transactions are more secure (thus the lower fee) and generally speaking, credit cards offer better protection against fraud. I only use my debit card for ATM withdrawals, and credit cards for any purchase.

The sad reality is that more and more merchants are tacking on a fee to use cards. It's understandable when you realize they are losing ~3% on every transaction, which over time really adds up. $10,000 in monthly volume means losing $3600+ each year. The real question is why banks are charging merchants 3%+ when the actual cost to them IIRC is less than 1%. Even with a profit built in, 3% is ridiculous. But the extra fees help pay for rewards cards that offer cash back or airline miles.

Well according to Visa Debt website fraud department you are wrong. Whether you use a pin or not it is still billed and paid for by Visa Debt no they and not to place a fee.
Also according to FL Legal they can not charge a fee whether you use a pin or sign.

So maybe you need to do some fact checking
Read response #2 there is a link for you.

This information is not flat out wrong but yours is.
As I stated I went to several web site to research is this right/legal and all the site STATED NO

I can post them or you can do some research before you make comments

[Eg_cruz]

Originally Posted by Pugchief

This information is misleading if not flat-out wrong.

Using a debit card in a PIN based transaction costs the merchant less than using a credit card. But if you sign instead (virtually all restaurants), the merchant is charged the same rate as a credit card.

Also, while the rate varies based on average monthly volume, we were paying $0.50 to $0.75 for debit card PIN transactions, not $0.05.

You should also know that PIN based debit card transactions are more secure (thus the lower fee) and generally speaking, credit cards offer better protection against fraud. I only use my debit card for ATM withdrawals, and credit cards for any purchase.

The sad reality is that more and more merchants are tacking on a fee to use cards. It's understandable when you realize they are losing ~3% on every transaction, which over time really adds up. $10,000 in monthly volume means losing $3600+ each year. The real question is why banks are charging merchants 3%+ when the actual cost to them IIRC is less than 1%. Even with a profit built in, 3% is ridiculous. But the extra fees help pay for rewards cards that offer cash back or airline miles.

https://usa.visa.com/dam/VCOM/global...qa-for-web.pdf

For your reading pleasure

[alwann]

Can businesses charging for using credit cards still deduct bank card cost as a business expense?

[BrianL99]

Originally Posted by alwann

Can businesses charging for using credit cards still deduct bank card cost as a business expense?

Of course, the money comes in as "revenue" and the charge is an "expense".

I thought the rule had evolved? It used to be, it was illegal to charge a "convenience fee" or "CC Fee" on a Debit Card, pursuant to the Durbin amendment to the Dodd-Frank Act?

I remember reading somewhere, that there was a change and the vendor is allowed to charge "actual cost" (which is like something like 15¢), unless the vendor is going through a couple of extra "middle men", which some do.

Both VISA & MasterCard specifically ban charging a fee, when using their system ... & almost all Debit Cards use the VISA or MC system.

As for "reporting" the transaction ... been there, did that. I reported it to the FL Attorney General, when the Tax Office in Ocala, charged me (I think) it was $6.99 for using a Debit Card when I renewed a Car Registration ... I never heard back from the AG's office.

I've been in at least 3 arguments with restaurants in the TV area over getting charged, but I just gave up complaining. It's a scam, but it's not worth raising my blood pressure.

[Joecooool418]

Originally Posted by Eg_cruz

Last week I was charged a 3% fee because I used my bank debt card instead of cash or credit card.
So I had to look this up because I know that the debit card fees are very low if any and yes I did I checked and the fee to use a debit card for the merchants is $.05-$.21 not 3%.
I went and looked a little further and found out they are not allowed to charge a fee on a debit card or a prepaid card per agreement with a debit card holder companies
When I called and questioned it, they told me I was wrong that they’re allowed to per Florida law so again I went and research again, this time a little deeper.
Yes, in Florida they can charge 3 to 4% on credit card transactions only not on debit cards or prepaid cards
I found that you can report them through the state of Florida and through your debt card holder.
I get that it’s only a 3% fee but why do I have to pay them more than what they have to pay if they want to charge me $.21 per transaction fine but why are you charging me 3% when they don’t get charged 3%
To me, this is the restaurants and merchants who charge these fees on debit cards, they’re just ripping you off and we just have been paying it with no questions asked
So I will be reporting any restaurant or merchant that charges me a fee on a debit card.
Especially Visa debit it is in their rules with the merchants that they are not allowed to charge a fee no matter what

Whatever happened to it’s the cost of being in business?

They can charge you whatever fee they want if they put it the menu.

Probably even if they don't.

[Pugchief]

Originally Posted by kansasr

Your math is WAY off

Which part? I ran a small business for 40 years and did my own books, so I have experience with merchant fees.

[Pugchief]

Originally Posted by Eg_cruz

Well according to Visa Debt website fraud department you are wrong. Whether you use a pin or not it is still billed and paid for by Visa Debt no they and not to place a fee.
Also according to FL Legal they can not charge a fee whether you use a pin or sign.

So maybe you need to do some fact checking
Read response #2 there is a link for you.

This information is not flat out wrong but yours is.
As I stated I went to several web site to research is this right/legal and all the site STATED NO

I can post them or you can do some research before you make comments

I did read post #2. Nothing there disputes anything I said. Note that I did not comment on the legality of debit card surcharges, only how the costs to merchants work. If you think it does, read what I wrote and specify which item. I ran a small business (not in FL) and dealt with this all the time. I am not wrong.

[Pugchief]

Originally Posted by Eg_cruz

https://usa.visa.com/dam/VCOM/global...qa-for-web.pdf

For your reading pleasure

Again, I did not comment on the legality of debit card surcharges. If you think I did, please quote the statement. Nothing in your linked article disputes anything I said.