Anonymous
05/06/2025 11:16
Subject: Hotel - 3% surcharge on credit cards
Anonymous wrote:Pretty sure these policies are a violation of their terms with the major card issuers.
As discussed above, pre-2013 they were in violation of the credit card processing terms. They are now allowable under those agreements (for credit cards) as long as properly disclosed/published.
I am willing to bet these are smaller hotels that are owned by families. Let's be honest, there is some benefit to possibly not disclosing all income on tax forms, and it's a lot easier to do that if some of your income is cash. At a corporate-owned property it's too risky to have employees handling a lot of cash, both because of internal theft as well as external risk.
Anonymous
05/06/2025 11:16
Subject: Re:Hotel - 3% surcharge on credit cards
Anonymous wrote:Anonymous wrote:It is illegal to charge a fee on any debit cards.
This is literally in every merchant agreement with all processors. I am in charge of the merchant agreements and cc processing at my job. We've changed processors loads of times to get better rates and these two main stipulations have been in every agreement: 1) you cannot charge a fee if you do not have that fee posted and 2) you cannot charge a fee on any debit cards. Businesses must eat the $0.34 interchange fee that comes with processing every card type. The interchange fee is the fee that gets applied to every card you charge, whether by swipe or manual entry. It's usually $0.34 + 3.0-3.5% of the transaction total that processors charge as a fee.
The best thing to do is call the number on the back of your debit card and give them the name and address of the business that is charging you the fee. Take a photo of the signs as well. They'll want that submitted. The bank will then go after that business and they'll almost certainly get their merchant ID cancelled and their contract with their processor canceled.
I think you are conflating what's against THE LAW and what's against the merchant agreement. Anyone can charge a fee if they want, legally. Whether they will get shut down by their processor is a separate issue.
The Durbin Amendment (part of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act) prohibits surcharging debit card transactions, including prepaid cards, regardless of whether they are processed as "credit" transactions. This federal regulation caps debit card interchange fees (e.g., 21 cents plus 0.05% per transaction) and explicitly bans passing these fees to consumers via surcharges to protect consumers from additional costs.
Anonymous
05/06/2025 11:12
Subject: Hotel - 3% surcharge on credit cards
Pretty sure these policies are a violation of their terms with the major card issuers.
Anonymous
05/06/2025 10:56
Subject: Hotel - 3% surcharge on credit cards
This is happening in many red states.
Hotel chains, especially.
From Hilton to Marriott etc...
Not just small boutique hotels.
Money from tariffs has to be made up somewhere.
Hotel chains, especially.
From Hilton to Marriott etc...
Not just small boutique hotels.
Money from tariffs has to be made up somewhere.
Anonymous
05/06/2025 10:54
Subject: Re:Hotel - 3% surcharge on credit cards
Anonymous wrote:It is illegal to charge a fee on any debit cards.
This is literally in every merchant agreement with all processors. I am in charge of the merchant agreements and cc processing at my job. We've changed processors loads of times to get better rates and these two main stipulations have been in every agreement: 1) you cannot charge a fee if you do not have that fee posted and 2) you cannot charge a fee on any debit cards. Businesses must eat the $0.34 interchange fee that comes with processing every card type. The interchange fee is the fee that gets applied to every card you charge, whether by swipe or manual entry. It's usually $0.34 + 3.0-3.5% of the transaction total that processors charge as a fee.
The best thing to do is call the number on the back of your debit card and give them the name and address of the business that is charging you the fee. Take a photo of the signs as well. They'll want that submitted. The bank will then go after that business and they'll almost certainly get their merchant ID cancelled and their contract with their processor canceled.
I think you are conflating what's against THE LAW and what's against the merchant agreement. Anyone can charge a fee if they want, legally. Whether they will get shut down by their processor is a separate issue.
Anonymous
05/06/2025 10:49
Subject: Re:Hotel - 3% surcharge on credit cards
It is illegal to charge a fee on any debit cards.
This is literally in every merchant agreement with all processors. I am in charge of the merchant agreements and cc processing at my job. We've changed processors loads of times to get better rates and these two main stipulations have been in every agreement: 1) you cannot charge a fee if you do not have that fee posted and 2) you cannot charge a fee on any debit cards. Businesses must eat the $0.34 interchange fee that comes with processing every card type. The interchange fee is the fee that gets applied to every card you charge, whether by swipe or manual entry. It's usually $0.34 + 3.0-3.5% of the transaction total that processors charge as a fee.
The best thing to do is call the number on the back of your debit card and give them the name and address of the business that is charging you the fee. Take a photo of the signs as well. They'll want that submitted. The bank will then go after that business and they'll almost certainly get their merchant ID cancelled and their contract with their processor canceled.
This is literally in every merchant agreement with all processors. I am in charge of the merchant agreements and cc processing at my job. We've changed processors loads of times to get better rates and these two main stipulations have been in every agreement: 1) you cannot charge a fee if you do not have that fee posted and 2) you cannot charge a fee on any debit cards. Businesses must eat the $0.34 interchange fee that comes with processing every card type. The interchange fee is the fee that gets applied to every card you charge, whether by swipe or manual entry. It's usually $0.34 + 3.0-3.5% of the transaction total that processors charge as a fee.
The best thing to do is call the number on the back of your debit card and give them the name and address of the business that is charging you the fee. Take a photo of the signs as well. They'll want that submitted. The bank will then go after that business and they'll almost certainly get their merchant ID cancelled and their contract with their processor canceled.
Anonymous
05/06/2025 10:25
Subject: Hotel - 3% surcharge on credit cards
Anonymous wrote:CC companies generally charge the business 3%. Small businesses (especially Mom & Pop type) have always passed that 3% along to the customer. If hotels are now doing it, they are increasing their revenue by 3% by no longer paying the fee themselves.
This hardly seems legal in that a hotel bill can easily be in the 1000s. Who carries that kind of cash around, or leaves in their room when not out and about.
It's legal in most states for merchants to pass along credit card fees to their customers. 3% is not small--that's why you see smaller vendors moving to Square, Stripe etc...and in other countries there are QR codes that debit your bank account which are much much cheaper to transact with.
Anonymous
05/06/2025 10:07
Subject: Hotel - 3% surcharge on credit cards
Anonymous wrote:Anonymous wrote:CC companies generally charge the business 3%. Small businesses (especially Mom & Pop type) have always passed that 3% along to the customer. If hotels are now doing it, they are increasing their revenue by 3% by no longer paying the fee themselves.
This hardly seems legal in that a hotel bill can easily be in the 1000s. Who carries that kind of cash around, or leaves in their room when not out and about.
You're a youngster. Before 2013, it wasn't permitted. But a bunch of merchants sued Visa/Mastercard for excessive fees and this was part of the settlement.
Exactly. The fee was always a cost of doing business absorbed by the vendor. The only thing I remember as a kid having a different price cash vs credit was gas at the gas station.
Anonymous
05/06/2025 09:14
Subject: Hotel - 3% surcharge on credit cards
Anonymous wrote:CC companies generally charge the business 3%. Small businesses (especially Mom & Pop type) have always passed that 3% along to the customer. If hotels are now doing it, they are increasing their revenue by 3% by no longer paying the fee themselves.
This hardly seems legal in that a hotel bill can easily be in the 1000s. Who carries that kind of cash around, or leaves in their room when not out and about.
You're a youngster. Before 2013, it wasn't permitted. But a bunch of merchants sued Visa/Mastercard for excessive fees and this was part of the settlement.
Anonymous
05/06/2025 08:59
Subject: Hotel - 3% surcharge on credit cards
Why don’t these places spin it differently?:
“3% discount if using cash”
“3% discount if using cash”
Anonymous
05/06/2025 08:57
Subject: Hotel - 3% surcharge on credit cards
This must be a small hotel.
I've seen it at a few restaurants, too.
I've seen it at a few restaurants, too.
Anonymous
05/06/2025 08:50
Subject: Hotel - 3% surcharge on credit cards
CC companies generally charge the business 3%. Small businesses (especially Mom & Pop type) have always passed that 3% along to the customer. If hotels are now doing it, they are increasing their revenue by 3% by no longer paying the fee themselves.
This hardly seems legal in that a hotel bill can easily be in the 1000s. Who carries that kind of cash around, or leaves in their room when not out and about.
This hardly seems legal in that a hotel bill can easily be in the 1000s. Who carries that kind of cash around, or leaves in their room when not out and about.
Anonymous
05/06/2025 08:46
Subject: Re:Hotel - 3% surcharge on credit cards
That's so weird because most hotels want a credit card on file for things you didn't pay for and things you destroyed.
Anonymous
05/06/2025 08:33
Subject: Hotel - 3% surcharge on credit cards
I guess checks are going to make a comeback. I noticed those signs in almost every store in Florida, although not the hotel.
Anonymous
05/06/2025 08:10
Subject: Hotel - 3% surcharge on credit cards
I’m staying at a hotel that has this sign at check in:
“A 3% surcharge will apply to all credit / debit card payments. This fee does not apply to cash payments.”
Is this really a thing now? Paying cash at a hotel feels so shady.
“A 3% surcharge will apply to all credit / debit card payments. This fee does not apply to cash payments.”
Is this really a thing now? Paying cash at a hotel feels so shady.