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Major Credit Card issuers' Merchant Agreements Archived From: Finance

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   posted: Mar. 24, 2008 @ 4:34p
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My apartment complex recently sent a letter to me stating that they would be charging me a "surcharge" for the privelage of using my Credit Card which I have already been doing since I moved in 6 months ago. This didn't seem right to me, so I did a little research.

Many in the FWF community know it is against Major issuers' policy to have minimums and maximums, but it also states that extra fees associated with CC purchases are prohibited. In some very specific cases it is allowed, but for the most part, these charges are against the merchant policy. Here are some links to the Major Issuers' Merchant Agreements. They are worth a skim if you have some time and if you have an issue with extra fees or a store giving you trouble for minimum or maximum purchases, you can present them with this.

Has anyone ever actually taken these terms to a merchant? I plan on arguing verbally first, then presenting the visa agreement if I have to. I don't know how it will turn out, but if there's enough interest, I'll update

Visa - Pg 9 + 10

Master Card - Pg 49 + 50

American Express - Pg 8

Disclaimers: Yes I know I can pay with other means like Cash or Direct Deposit and the Mgt Company has absolutely NO obligation to offer credit card payment, but when I signed the lease, they said it was No Prob. Now all of a sudden its an extra $40 6 months into my lease. Also, I did a search, but could not find anything specific to the merchant agreements, just some references to them here and there.

   posted: Mar. 24, 2008 @ 4:34p

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   posted: Mar. 24, 2008 @ 4:57p
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I've reported merchants to Visa and M/C when they tried to have minimum charges, but I have no idea if anything came of it.

Interestingly, here in the UK, charging a surcharge to use a credit card is almost expected, and no one raises an eyebrow. RyanAir charges a gigantic surcharge - so big that it's learly just another revenue stream for them. I bought $600 worth of tix on RyanAir last week and paid a little over $50 in credit card surcharge - about 8%. Amazing....

   posted: Mar. 24, 2008 @ 5:26p
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Pay with the card, but make sure to get a receipt showing the total charge itemized. i.e. "rent $600, cc surcharge $10, total $610"

Then you can dispute since they cannot charge you the fee.

It may be easier to annonymously report them on the website. This seems to have worked wonders at our local mall as all signs that state "minimum purchase" or "surcharge" have been removed and stores no longer ask/care.

   posted: Mar. 24, 2008 @ 5:52p
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Cash discounts are ok in most merchant agreements. Everyone but you will just get a cash discount.

   posted: Mar. 24, 2008 @ 6:07p
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MinskyMoment said:Cash discounts are ok in most merchant agreements. Everyone but you will just get a cash discount.
Except the rent is spelled out in a contract for some period of time.

The OP's argument is very valid that this would be considered a surcharge (also the apartment complex referred to it as such).
My approach would be to kindly remind the Apartment complex that it is against their merchant agreement to surcharge. Who knows they might make a single exception to keep the tenant from raising it with the CC companies.

If that doesn't work I would pay it once making sure it was itemized and send it in to VISA/AMEX.

Good Luck!

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