A Credit Card Surcharge is a fee charged to a customer who pays by Credit Card, usually with a specific credit company.
These surcharges are most commonly added on top of the advertised price of the product or service being sold by an establishment or business that accepts Credit Cards as payment.
In some cases where Credit Cards have been used for Credit purchases, part of the Credit Sale will be used to pay for Credit Card fees.
Skimming is another form of Credit Card Surcharge which refers to a process where an employee at a business or establishment adds their own surcharge onto Credit Card transactions.
This practice occurs when the establishment has no means of processing Credit Card transactions electronically, or are not Credit Card compliant.
Credit companies do allow for Credit Card surcharges, however it is rare that they specify a maximum amount for these fees.
This means Credit Card Surcharge can range from 10% to more than 30%.
There is also some confusion regarding the legality of Credit Card surcharges in Australia. This is because Credit Card surcharges are legal in some States, however not in others.
Credit Card Surcharges that comply with Australian laws are those charged by Credit Service Organizations (CSO) and Credit Consultants (CC). Credit Cards Surcharge amounts on these Credit products must be made public knowledge.
This is also the case for Credit Card Surcharges which must be added on Credit purchases made by Credit Card.
What Can You Do If You Have Been Charged A Credit Card Surcharge?
You can make a complaint to the Credit Company you used for that Credit purchase. They will then investigate your claim and determine if any Credit Card surcharge was unfairly charged.
If Credit Card Surcharges are found to be unfair, Credit companies will make refunds.
Complaints about Credit Card surcharges made by Credit Service Organisations and Credit Consultants must be made directly to the Credit Company who provided your Credit product.
Once you have lodged a complaint with your Credit company they should inform you the outcome of the Credit Company’s investigation into Credit Card Surcharge complaints.
You can also contact the Credit Company you used for Credit product with a complaint regarding Credit Card surcharges, your credit provider will then inform you of the outcome of it’s Credit Card surcharge investigation.
Which States In USA Allow Credit Card Surcharges?
In the USA Credit Card Surcharges are allowed by Federal Laws. Credit companies provide Credit Cards for each state and Credit Card surcharges can be different depending on where you live in the United States of America.
Credit Company Credit Cards which enable Credit purchases, Credit Consultants and Credit Service Organizations can charge Credit Card Surcharges in the United States which must be made public knowledge.
State laws in relation to Credit Cards and Credit Card surcharges in the United States are:
- Credit card surcharges allowed by law for Credit Card transactions completed within California (USA).
- Credit card surcharges allowed by law for Credit Card transactions completed within Colorado (USA).
- Credit card surcharges allowed by law for Credit Card transactions completed within Connecticut (USA).
- Credit card surcharges allowed by law for Credit Card transactions completed within Florida (USA).
- Credit card surcharges are illegal for Credit Card transactions in Hawaii (USA).
- Credit card surcharges are illegal for Credit Card transactions in Illinois (USA).
- Credit card surcharges are illegal for Credit Card transactions in Kansas (USA).
- Credit card surcharges are illegal for Credit Card transactions in Maine (USA).