[Pugchief]

Originally Posted by alwann

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

Yes. But

Any surcharge is reported as additional income/revenue, while any fees to the credit card processor are a normal expense. So in the end, you are only deducting the NET cost if there is one. If there was a net gain, it would be taxable income.

[vintageogauge]

I use cash, no fees however many times they added it on assuming I was using a card and then had to back it off. Cash cannot be hacked, it's totally safe. In my 80 years I have never been robbed or a victim of a pickpocket and now at 80 I don't go out as much but still feel comfortable using cash.

[retiredguy123]

I always use cash in restaurants. But the truth is that restaurants that accept credit cards or debit cards make more money by allowing customers to use these cards regardless if they charge a fee or not. Accepting the cards increases their overall profit because people spend more money when they can use a card. Some people wouldn't even go to restaurants if they didn't accept the cards.

[Eg_cruz]

Originally Posted by BrianL99

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.

You can send the complaint directly to Visa or Mastercard whoever your debit card is with and they will reach out to the merchant. That’s what I did.

[Eg_cruz]

Originally Posted by Joecooool418

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

Probably even if they don't.

Not true
According to the Visa debit website, they cannot even if it’s displayed on the menu or even if you sign for it like a credit card they still cannot charge you a fee on a debit card

[Teed_Off]

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?

Care to disclose which restaurant did you wrong?

[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.

This to reply that you read both the Visa and FL Legal and said that I was still wrong

You stated I was flat out wrong and that merchants can charge for a debit card

I stated that that merchants cannot charge a 3% fee on a debit card even if they use a credit card terminal that you have to sign for they still cannot charge a debit card. It says it in black-and-white on their page.


The Rules on Visa Debit Card Fees

• Card Network Rules: Visa and other major card brands explicitly ban merchants from adding a surcharge to debit card or prepaid card transactions. This rule applies whether you run the card as a signature-based ("credit") or PIN-based ("debit") transaction.

From Visa website
Can I assess a surcharge on both credit and debit card purchases?
No. The ability to surcharge only applies to credit card purchases, and only under certain
conditions. U.S. merchants cannot surcharge debit card or prepaid card purchases.
Q. Can I assess a surcharge on debit card transactions for which the cardholder using a
debit card chooses “credit” on the point of sale terminal?
No. The ability to surcharge only applies to purchases made with a credit card, and only under
certain conditions

You stated that if I use my debit card as a credit card they can charge a fee. If you the above states from the two site I told you I found that they can not charge not and you said I was wrong

My point has been that merchants are not supposed to charge a fee to debit cards whether it is used with a pin number or it is used with a signature or you use the bypass.
I don’t understand why you say I am wrong when it’s plain as day written in black and white. In the Visa website is the merchant question-and-answer not the consumer but for the merchant and it’s telling the merchant directly “no you cannot charge a fee on a debit card”.

[retiredguy123]

Originally Posted by Eg_cruz

Not true
According to the Visa debit website, they cannot even if it’s displayed on the menu or even if you sign for it like a credit card they still cannot charge you a fee on a debit card

Personally, I have never understood why signing a debit card transaction as a credit card charge does anything for you, except to eliminate the need to enter a pin. You are still not borrowing money, so you are not protected by the Federal credit card law for disputes. You should never use a debit card for any purchases. You should always use a credit card.