Credit Card Surcharges in Restaurants

[MsDiPesto]

On 10/13/2024 at 11:05 AM, Ericandblueboy said:

Had brunch at Pearl Dive today.  The po boy sandwiches were really mediocre but what really irked me is there was an over $4 "noncash" fee imposed on a bill of $98.  The fee was over 4%, which is more than the credit card processing fee.  So they're making a profit on the fee - which I think is against credit card rules or something.

It's only prohibited in CT, MA, ME, NY and PR. (Some sites only mention CT, MA and PR).

https://www.lawpay.com/about/blog/credit-card-surcharge-rules/

[noamb]

That link also claims that the CC processor rules (not a law) prohibit a surcharge larger than the actual fee, generally 4%

[that was a typo, as the quote in the next post shows. I meant 3%]

[Ericandblueboy]

Quote

This rule stipulates that you cannot use surcharging as a means to make a profit. In general, a surcharge cannot exceed 3% in the U.S.

So it's the CC company that sets these rules.  And when I googled Amex's processing fee, it said 3% as well.