Allow CreditCard surcharging for payments made via CreditCards.
In November 2012, the United States District Court for
the Eastern District of New York preliminarily approved a proposed settlement
agreement in the In re Payment Card Interchange Fee and Merchant Discount
Antitrust Litigation. As part of this settlement, Visa and MasterCard rules
prohibiting surcharging for merchants in the U.S. for credit card transactions will change
beginning January 27, 2013.
Surcharge requirements issued by Visa and MasterCard
surcharging to credit cards only (no surcharging debit and prepaid cards) and
limit the amount of the surcharge to the applicable merchant discount rate for
the credit card transaction surcharged.
the actual dollar amount of the surcharge on every receipt and disclose the
fact that the merchant assesses a surcharge at the point of store entry and at
the point of sale.
- Cap on the
level of the surcharge. The level of the fee that a merchant may charge a
cardholder is capped in relation to the merchant's cost for Visa and MasterCard
Merchants that choose to surcharge credit card transactions
must provide 30 days advance written notice to Visa Inc., MasterCard Worldwide,
and your acquirer prior to surcharging, and must identify whether the merchant
intends to impose surcharges at the brand or product level.
For a summary of the rules changes, visit the following
MasterCard Worldwide http://www.mastercard.us/merchants/_assets/docs/Acquirer_Notice.pdf
For a full overview of these rule changes are set forth
in full in the Settlement Agreement, which appears on the website: http://www.paymentcardsettlement.com.
To re-iterate, the above ruling does not change any
aspect of your account or your payment processing. It only reflects a change in
the regulation whereby merchants who were previously prohibited from
surcharging for a customer to use a credit card will now be able to do so under
the above requirements.
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