Additional Charges When Using Credit Card?
By pillow08
@pillow08 (97)
Philippines
December 11, 2009 11:52pm CST
I'm having my desktop fixed, overhauled more appropriately. =P The service center informed us that if we use credit card they would be charging us extra. Is that legal? I thought it became an issue a while back and some laws were passed against it? I know that hidden charges by the Credit card company were prohibited, but what about the establishment?
Errr.. Alright, I could actually research on this just a little too lazy right now and a little busy with business. Oh, did I mention lazy? =P
1 person likes this
3 responses
@rsa101 (38166)
• Philippines
14 Dec 09
I think this practice is not encourage and is being prohibited already. The credit card companies are not the ones practicing this but the commercial establishment that does not have credit line with this credit card companies. What happens is that they use those stores that have the credit line and the store gets the premium for using their lines. It is not the credit card companies that really earns from this but the one that owns the business. I just do not know where you should complain this practice. I think you can start inquiring on your credit card company and ask them if you can file a complaint for that additional charges they charge on your credit card.
@rsa101 (38166)
• Philippines
15 Dec 09
Wow you really research on it. Yeah there seems to be a little problem with provision line#3. That could indeed be abused in the process. One way to clear this up is also to ask your credit card company what is their stand on this practice because I know that they can stop this additional charges from being billed to you and the merchant will also not be paid by the credit card company.
@kareendj (254)
• Philippines
22 Dec 09
It's illegal to charge extra if clients/customers are paying using their credit card. There's actually a law already regarding this matter. I think they are charging you extra because whenever you swipe a card, there's a charge of 2.5% to the vendor. However, they should be the ones shouldering it. That's why most vendors prefer cash...
@pillow08 (97)
• Philippines
22 Dec 09
Yeah, I did my research already. Since nobody replied to the post when I was still in my "Lazy" state. =P But thanks though. It is not always wise to bring cash, specially in huge amount in our country. The computer repair shop charged me almost Php15,000.00 (approximately USD330.00). I rarely go out with more than Php5,000.00(USD110.00) in my wallet. I believe it's a mutual relationship i.e., CC company charges the vendor in exchange for being able to accept credit card transactions from the customers. Being able to accept credit card transactions invites more customers and broadens the scope of clients that they could cater to. If they aren't making money from accepting CCs they why would they still continue to offer to accept CCs? It's just that the profit is lessened when customers use Credit cards. Another advantage for vendors is that even if I fail to pay for my credit card bill, the vendor would still get paid.
And yes, law has been passed and approved against it but there are lot of loopholes.
@jlamela (4897)
• Philippines
13 Dec 09
I am not really sure about this because I never owned a credit card ever since. But I heard things about this also that some company will charged a certain amount when using a credit card because it is not a direct cash and according to them most credit companies are very delayed when reimbursing money. But I am not really sure if this is illegal or what. You may verify that to your card issuer.
@pillow08 (97)
• Philippines
14 Dec 09
Delayed or not, it is not the consumer's fault. That transaction is between the merchant and the Credit Card Company. As consumers and Credit Card holder, we are directly liable to the Credit Card company. I pay my bill on time, too early even, and always in excess. They can't put the blame on the consumers, besides, when you use credit card, it is as good as paid. The Credit Card Company (CC) pays the merchant, whether the consumer paid for his/her CC bill. The collection of the amount owed is the CC Company's responsibility.
