06/06/2024
How do you feel about a merchant charging you an EXTRA 3.50% when you use your VISA debt card? This question is specific to VISA/MC debit cards NOT using your pin. Check out my research on this below. Are they allowed to?
Answer:
The Durbin Amendment of the Dodd-Frank Wall Street Reform and Consumer Protection Act, enacted in 2010, prohibits surcharging debit cards and prepaid cards to protect consumers from hidden fees.
It is not legal for a merchant to charge a credit card fee on a debit card in the United States. The Durbin Amendment of the Dodd-Frank Wall Street Reform and Consumer Protection Act, enacted in 2010, prohibits surcharging debit cards and prepaid cards to protect consumers from hidden fees. This restriction applies even if the card is run as a signature-based transaction without a PIN. Major card issuers, such as Visa and Mastercard, also prohibit surcharging debit card transactions.
Credit card issuers can only receive fees for debit card transactions of up to 21 cents, plus 0.05 percent of the transaction value, plus 1 cent for fraud prevention.
If a merchant accidentally adds a surcharge to a debit card transaction, they may be in violation of federal law and credit card company rules. Cardholders can report merchants who charge excessive payment card surcharges or surcharge debit and prepaid card transactions by filling out a Merchant Violation form on Visa.com or Mastercard.com
