You asked, we listened. Our last article answering your credit card charge questions got you a lot of follow-up, so we’re back with more answers about the additional fees you might see when using your Visa or MasterCard.
Should businesses notify customers that the surcharge applies?
Businesses that apply the surcharge must make it clear to customers that they are doing so — and there is a strict protocol. For brick-and-mortar businesses, merchants should make sure they have a sign on the door indicating they intend to charge a surcharge for credit card transactions, said Corinne Pohlmann, senior vice-president of national affairs and partnerships at the Canadian Federation of Independents Businesses (CFIB). “We’re actually creating some standards right now to help businesses make sure they’re complying with the rules,” he said. At the point of sale there should be a second sign indicating the credit card charge, which should also specify the amount that will be charged for using Visa or MasterCard. In addition to the symbol, the dollar amount of the markup should appear on the transaction receipt the merchant provides to its customers, according to Luciana Brasil, a partner at the Vancouver-based law firm Branch MacMaster, which worked on the class action . which led to the settlement. Online transactions should have a notification as you tap the checkout portion of the transaction before completing the payment, Pohlmann explained. The surcharge, if applied to the online transaction, also appears on your receipt. Some businesses have already notified customers of their intention to start applying a credit card surcharge, including telecommunications provider Telus. You won’t see it in Quebec, however, because customers there are protected from the surcharge under the province’s Consumer Protection Act.
Will the surcharge be added before or after taxes?
Under the recent settlement, the surcharge will be added before taxes, Brasil said.
When returning a product you purchased, will the surcharge be refunded?
The short answer is yes. If you are charged a surcharge during a purchase and choose to return that purchase, you will be refunded the surcharge. “A full refund requires a refund of the full surcharge, while a partial refund requires only a refund of the corresponding portion of the surcharge,” Brasil explained.
Will all card companies play by the same rules?
Currently, the surcharge is only allowed with Visa and MasterCard because they were the two companies involved in the class action. American Express and other credit cards were not part of the lawsuit or settlement. “To the extent that merchants wish to charge credit cards issued by any other credit card service provider, they should consult that provider and its rules to ensure that this is permitted,” Brasil said.
