Niyom Panich

[hml367]

Maybe Visa doesn't mind a discount as opposed to a surcharge. From their Visa International Operating Regulations Core Priniples, effective 15 October, 2011, and under paragraph 6.2:

Merchants may steer customers who initially present a Visa card to an alternative

method of payment, such as providing discounts for cash, but may not do so in a confusing manner

that denies consumer choice.

This seems to me as long as the surcharge is in the price, discount for cash is ok. This is Visa International, not Thai laws.

This practice has gone on for a long time at least in Chiang Mai. My experience is that it is less practiced now than some years ago.

MSPain

Edited May 27, 2012 by hml367

[raro]

Update

just got a phone call from Citibank apologizing for the mistake both of their call center staff did. The merchant is NOT allowed to give the choice between cash payment or 3% surcharge. Instead they should have told the merchant either waive the 3% or we (Citibank) will report you to Visa International.

The Citibank call center staff (all of them) have been informed about this and Citibank will also report the shop where I had the trouble to Visa International. Indeed, if you rack up reports like that you will lose the right to accept visa card payments.

[CMSteve]

Good to know.

Wonder what would actually happen though. As the store's machine for taking credit card charges is the same machine for visa, mc, etc etc. Would the store just keep chugging along processing non-visa cards? Actually just stop accepting visa all together?

Update

just got a phone call from Citibank apologizing for the mistake both of their call center staff did. The merchant is NOT allowed to give the choice between cash payment or 3% surcharge. Instead they should have told the merchant either waive the 3% or we (Citibank) will report you to Visa International.

The Citibank call center staff (all of them) have been informed about this and Citibank will also report the shop where I had the trouble to Visa International. Indeed, if you rack up reports like that you will lose the right to accept visa card payments.

[CMSteve]

I have a sneaking suspicion that your bank manager was just try to make you feel good and didn't actually check on this...

Take a look at the following, and yes, its been a slow day.

"“It’s not an illegal practice. Shops can charge you an extra 3-5% of the price of the goods or

services. Most shops are happy to cover the fee for using a credit card, but some shops aren’t.

However, doing this only works to a shop’s detriment. Customers won’t be impressed once

they know that the goods they are buying cost more than the marked price.

Only 5%-10% of shops charge 3-5% extra. If you are not happy with the surcharge, you can

shop around and buy goods from another shop. Usually, for consumer products, no there will

be no surcharge.”

Friday, January 24, 2003 4:03:56 PM Sakdadet Anumas, Finance Manager,

Thepkrasattri Rd Branch, Bangkok Bank.""

Its seems that new regulations are still on hold. Further take a look at this from the Visa wiki. UK, Australia, and 40 of 50 US states have laws to ALLOW for a surcharge!

"In ten U.S. states, surcharges for the use of a credit card are forbidden by law (California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas) but a discount for cash is permitted under specific rules.^[45] Some countries have banned the no-surcharge rule, most notably the UK^[46] and Australia^[47] and retailers in those countries may apply surcharges to any credit-card transaction, Visa or otherwise"

Good to know.

Wonder what would actually happen though. As the store's machine for taking credit card charges is the same machine for visa, mc, etc etc. Would the store just keep chugging along processing non-visa cards? Actually just stop accepting visa all together?

Update

just got a phone call from Citibank apologizing for the mistake both of their call center staff did. The merchant is NOT allowed to give the choice between cash payment or 3% surcharge. Instead they should have told the merchant either waive the 3% or we (Citibank) will report you to Visa International.

The Citibank call center staff (all of them) have been informed about this and Citibank will also report the shop where I had the trouble to Visa International. Indeed, if you rack up reports like that you will lose the right to accept visa card payments.