Credit Card Surcharges - MLive.com
Credit Card Surcharges - MLive.com
Credit Card Surcharges - MLive.com
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CONSUMER ALERT<br />
BILL SCHUETTE<br />
ATTORNEY GENERAL<br />
The Attorney General provides Consumer Alerts to inform the public of unfair,<br />
misleading, or deceptive business practices, and to provide information and guidance on<br />
other issues of concern. Consumer Alerts are not legal advice, legal authority, or a<br />
binding legal opinion from the Department of Attorney General.<br />
CREDIT CARD SURCHARGES<br />
Starting January 27, 2013, merchants in Michigan are allowed to surcharge customers for<br />
the actual costs of processing Visa and Master<strong>Card</strong> credit card transactions, or 4 percent<br />
of the purchase price, whichever is less. The typical cost of processing credit card<br />
transactions is between 1.5 and 3 percent of the purchase price.<br />
Historically, Visa and Master<strong>Card</strong> have prohibited merchants for imposing a surcharge<br />
on credit card purchases. A recent settlement in an antitrust class action case brought by<br />
retailers against Visa, Master<strong>Card</strong>, and a number of big banks, eliminates the ban.<br />
Although surcharging is permitted by the settlement, merchants must continue to abide<br />
by state laws that prohibit or restrict credit card surcharges. Michigan does not have any<br />
such law.<br />
Debit cards and prepaid cards are not subject to a surcharge.<br />
REQUIRED DISCLOSURES<br />
Brick and mortar sellers who choose to impose the surcharge must post a notice at the<br />
store’s entrance advising that a surcharge applies on purchases made with identified<br />
credit cards. At the point of sale, the exact percentage must be disclosed. Sales receipts<br />
must itemize the exact amount of the surcharge.<br />
Online sellers have to disclose that a surcharge will be imposed on the website page<br />
where credit cards are first mentioned.<br />
Michigan Attorney General Consumer Alerts are available at www.michigan.gov/ag<br />
Toll free 1-877-765-8388<br />
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TO FILE A GENERAL CONSUMER COMPLAINT<br />
If you have a consumer <strong>com</strong>plaint, you may contact the Attorney General's Consumer<br />
Protection Division at:<br />
Consumer Protection Division<br />
P.O. Box 30213<br />
Lansing, MI 48909<br />
517-373-1140<br />
Fax: 517-241-3771<br />
Toll free: 877-765-8388<br />
www.michigan.gov/ag (online <strong>com</strong>plaint form)<br />
Michigan Attorney General Consumer Alerts are available at www.michigan.gov/ag<br />
Toll free 1-877-765-8388<br />
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