Is Credit Card Surcharging Legal - Yes and No

Learning Objectives

• To reconnect to the history of the credit card processing industry
  
• To recognize what a credit card surcharge is, its rules and when/how should it be applied.
• To identify the merchant account fee structure a little in detail.
• To identify various strategies to reduce your credit card processing fees through alternate means.
• To identify the errors, inflated fees & hidden charges in credit card processing

Course Description

If you like playing with plastic, you have probably shopped with the merchants that add a surcharge to credit card purchases. Most times we accept such charges, and hardly ask the question – is that even legal? Usually, such charges are sold as merchant service fees, credit card fees, etc. That in reality is an extra fee charged by a merchant receiving payment by credit card. Credit card surcharging has been historically prohibited in the U.S. Currently, the following 9 states that prohibit such charges are Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma, and Texas. 

The New York law prohibits businesses from posting a cash price and adding a fee when customers choose credit cards as a mode of payment. The fact of the matter is law permits businesses to post a credit card price and charge less when a customer chooses cash, check, or equivalent means (read cash discount). Credit card companies make money off cardholders in a wide range of ways and their income has been experiencing solid growth for years charging for -

• Interest Income
• Interchange Fees
• Cash Advance Fees
• Annual Fees
• Penalty Fees
• Enhancement Income

In this webinar, the speaker Jeremy Layton will give you insights on advising your clients on -

• How to significantly reduce your credit processing fees
• How to be a valued advisor for such a client
• Understanding step-by-step how you can reduce your company’s credit card processing fees up to 50% without changing the processor

If you are looking for finance CPE courses, Finance Courses might interest you.

Overview

• History of Credit Card and credit card processing industry.

  5 mins
• Credit card industry: Understanding the structure.

  8 mins
• Understanding the fee structure and who benefits from these fees.

  12 mins
• How to mitigate fees without changing the credit card processor.

  23 mins
• What is surcharging? And is it legal? Benefits and Drawbacks of credit card surcharging.

  24 mins
• How surcharging should be done? DIY or basic methods that can help you reduce your credit card fees.

  31 mins
• Merchant account audits – the higher saving approach.

  48 mins
• How Merchant account audit proves to be beneficial for different Industries?

  49 mins
• Involvement of different entities in Merchant Account Audits.

  50 mins
• Understanding of Ideal Audit Process.

  50 mins
• The working process of Verisave to reduce credit card surcharges.

  51 mins