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Is it legal to charge customers a credit card service fee in Texas?

Discussion in 'BBS Hangout' started by body slam, Aug 2, 2020.

  1. body slam

    body slam Member

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    I made a purchase. The business told me the amount. I payed with a credit card and it added a SVC fee. I always thought the business is responsible to pay the fee. Is that legal in Texas?

    google says

    The practice of always charging customers a fee for credit card payments, no matter how the transaction takes place, is called a surcharge. These are currently prohibited in 10 states—Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma, and Texas.

    Who is right the business or google?
     
  2. KingCheetah

    KingCheetah Contributing Member

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    You need to get on Yelp ASAP.
     
  3. body slam

    body slam Member

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    I don't want to do that until I'm 100% sure. Plus I do a lot of business with the place. They recently switched owners and this started.
     
  4. Dr of Dunk

    Dr of Dunk Clutch Crew

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    It's all fun and games until you try to pay your property taxes. I've always wanted to put my property taxes on my card to get some points back, but they charge something like a 2.5% or so "convenience fee" for the privilege. Can't stand that...
     
  5. Dr of Dunk

    Dr of Dunk Clutch Crew

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    dmoneybangbang and body slam like this.
  6. Blake

    Blake Contributing Member

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    Some companies get around it by offering a “cash discount” like Spec’s
     
  7. Xerobull

    Xerobull You son of a b!tch! I'm in!

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    @body slam I don’t think it is without a disclosure. If they just dropped a fee on you, contest it with your cc company. Edit- looks like @Dr of Dunk found the legalese that changed in 2018.

    Or the low rent gas stations that have the gas price on the sign but underneath in small font it says cash price.

    At any rate, it’s tacky to pass the cost on to the consumer this way. Just increase prices to cover the fee. Good bookkeeping would tell them approximately how much to raise prices.
     
    #7 Xerobull, Aug 2, 2020
    Last edited: Aug 2, 2020
    body slam likes this.
  8. Buck Turgidson

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    I'm gonna need @bobrek's son to explain this via youtube
     
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  9. Buck Turgidson

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    It's tackier for a financial services company to tack on 3.5% (or whatever it is, and call it a "convenience fee") to every non-cash transaction for literally doing nothing outside of setting up the initial infrastructure, which the government subsidized.
     
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  10. Mr. Brightside

    Mr. Brightside Contributing Member

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    You shouldn't be allowed to pay any utility or tax bill via credit card. Too many people would challenge the charges down the line and it would wreak havoc on the local governments trying to address all these supposed errors.
     
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  11. bobrek

    bobrek Politics belong in the D & D

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    How often has this happened?
     
  12. rockbox

    rockbox Around before clutchcity.com

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    I don't agree. They are just being transparent
     
  13. Space Ghost

    Space Ghost Contributing Member

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    ???

    Have you not heard the saying Government is nothing more than a monopoly on violence?

    Try to do a challenge and see what happens.
     
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  14. bobrek

    bobrek Politics belong in the D & D

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    Also, folks have been able to use their charge cards on utility bills and taxes for years. I have yet to see any stories where customers are challenging those costs en masse.
     
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  15. KingCheetah

    KingCheetah Contributing Member

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  16. Mr. Brightside

    Mr. Brightside Contributing Member

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    KingCheetah likes this.
  17. KingCheetah

    KingCheetah Contributing Member

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    Far too often people have zero to no respect for our local government.
     
  18. Mr. Brightside

    Mr. Brightside Contributing Member

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    support local business, support local government

    (bumper sticker on my car)
     
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  19. KingCheetah

    KingCheetah Contributing Member

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    You're not going to believe this but my custom license plate is... SLB SLG
     
  20. Supermac34

    Supermac34 President, Von Wafer Fan Club

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    It may or may not be legal, but it probably most certainly against the Terms of Service that the business in question has with the Credit Card company.
     
    Nook, No Worries and Xerobull like this.

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