Extra Fee Using Credit Card

twhitehead · #1 11-20-2008, 07:34 PM

I have noticed lately that there seems to be an increase in stores that wish to charge an extra fee if a person is paying with credit card. Is this a legal practice in the Dominican Republic? Any information would be great. Thanks Tom

Chirimoya · #2 11-20-2008, 07:36 PM

Not sure if it's against the law, but it's probably against the card companies' rules: businesses can offer a discount for cash payments but should not charge extra for card payments.

francoisatl · #3 11-20-2008, 07:47 PM

places in atlanta ga do that if it is under $3 tell you it must be $4 or more to use your CC
i just leave

windeguy · #4 11-20-2008, 08:07 PM

You can try and report them to the credit card company. If they get enough complaints they should pull their authorization to use that card.

JDJones · #5 11-20-2008, 08:07 PM

Most businesses that i've dealt with in SD(and other parts of the country too) add 5% to your purchase if you pay with a CC.

Even the big stores like Americana will give you a discount, unless you pay with a CC, then you pay the full amount.

It's hard to find a store that will absorb the cost of doing business with a CC.

What's worse is the ones that don't know how to figure out percentages.

I spent a night at the Seabreeze hotel in Sosua a couple of weeks ago. I made a reservation by phone, and confirmed the rate of $50 dollars a night.

When we checked in, I gave the guy my CC to pay for the room(in advance, of course)

When he handed me the voucher, it was for $58 dollars. I asked him what the extra eight dollars was for, and he told me it was the 5% service charge imposed by the credit card companies.

I mentioned to him that 5% of 50 dollars is $2.50. He picked up a calculator, punched keys for almost a minute, then showed me the results that said $58 dollars.

I tried the old "what's ten percent of 50 dollars" routine, figuring I'd outcommon sense him, but when he started to use the calculator to figure THAT out, I knew there was no way I'd win this one..

How do you argue with a mentality like that? He was a really nice kid, I was tired, so I said screw it, and went to my room.

korejdk · #6 11-20-2008, 08:26 PM

has nothing to do with the DR, it is what's happening to the US...

olddog · #7 11-20-2008, 09:17 PM

Hi...

Charging xtra for CC use is in violation of company's franchise agreement with major credit card companies...

Stores don't want to lose their license to accept MasterCard or Visa.

Turn 'em in to CC company...this will stop this practice.

Period...

That's all folks...

Ol' Phil

MikeFisher · #8 11-21-2008, 12:58 AM

maybe back home Phil,
and btw i do not see the reason for such neither.
JDJ,
ha ha,
yeap, that's sorrily not new,
few years ago i even had a Lad as my new accountant,
til i told her to tell me the neto rate of a bill which i threw on the table, would've been funny if she not would've been my new (ex) accountant.
and right, for the few bucks difference just arrived tired, heck, if that nice guy would have calculated the right rate he may got a nice tip worth that difference.
i still take at my own business here in PC a extra fee for the use of CC's, too.
actually i am thinking about to raise the rate a bit and offer a discount for customers who pay cash, who pays CC has the usual rate.
but heck, where's the real difference??
who pays cash get's the same product a bit cheaper, 'cause when paid bu CC you have to give some cash to the CC provider, finally it is absolutely the same, just looks different when announced on commercials. sure the banks wanna see your CC's used, every day, for every coffee you get by the way on daily duty, 'cause they make their bucks with such.
but for the customer???
a discount for cash payment over the usual rate when paid by CC or a usual cash rate offered and a extra fee above that one when paid by CC, where's the difference?
Mike

Chirimoya · #9 11-21-2008, 07:12 AM

I haven't come across it that often but as it happens I did just this weekend, at a hotel in the capital. The receptionist practically admitted that they only paid tax on cc payments, hence the 16%.

BF1 · #10 11-21-2008, 08:23 AM

First of all, if you read the contract with Cardnet, it says you can't charge more for the use of CCard so, in theory, they shouldn’t do that.
Second, the percentage charged by Cardnet vary according with the size and type of business, 5% is maximum but usually is less than 4%, for big business is MUCH less than 4%.
The real reason, as stated by Chirimoya, is because the CCard company retain in favor of DGII an additional 2% of transactions as an ITBIS advance, and report the total of transactions made by the business each week so, using statistics from similar business the DGII can extrapolate the total volume of transactions (CC+cash)