This is where the "okay you can surcharge" part of Durbin, well, the card networks basically got the best of Durbin. Now not to veer too far off topic where this gets interesting is that different Visa cards cost different amounts to process. Feel free to read the Durbin amendment regarding this. Now it is different and the surcharge is okay, if they follow the rules. Pre-Durbin you could report a merchant that surcharged to Visa or MasterCard and the merchant would get sanctioned. Pre-Durbin if you caught a merchant that surcharged you could dispute the surcharge and get the merchant charged back. But after Durbin the rules changed and the card networks actually implemented into their rules and regulations standards that the merchant had to follow to surcharge including signage at the entry stating they surcharge along with the card acceptance decals and a specific line item on the receipt showing the surcharge and also that the surcharge could not be any more than the merchant's actual cost to process the card. Merchants in the US were not allowed to have a credit card surcharge per their agreement to process cards with the card processor which rules are set down from the card networks (they could always have a cash discount- effectively the same thing but presented differently). And I don't believe the Durbin Amendment actually allows the surcharge.īut again - this is not a big matter.Yes, the surcharges were prohibited by the card networks before the Durbin amendment for all US merchants. I don't believe credit card surcharges are ever prohibited. Hilton Garden Inn Virginia Beach Town Center: "*Please note that cash and checks are not accepted payment methods." ĭoubleTree by Hilton Hotel Leeds City Centre: "Please note that all reservations require a credit card and the hotel does not accept cash only reservations or cash payments." ĭoubleTree by Hilton Hotel Chicago - Arlington Heights: "Please note our hotel does not accept cash or prepaid debit cards. Hilton Garden Inn Columbus/Grove City: "Please note that cash is not accepted as a form of payment." Cash/ debit/ prepaid credit cards and credit-debit cards are not accepted." Hilton Toronto/Markham Suites Conference Centre & Spa: "Only major credit cards accepted. Here are examples from Hilton brands that I gathered in a quick internet search. Second that does not have to be your payment when checking out you can pay with cash.This is not necessarily true. You don't push your costs onto your customers.you just price your products appropriately. (Other students had real difficulty finding a current/former leader they considered to be ethical to interview.)Īnyway, one of that GM's favorite phrases was "the cost of doing business." Since almost every customer uses cards, I'm certain he'd tell "Steve" and Robert that credit card processing fees are the cost doing business. When I went to business school years later, I tracked him down and interviewed him for a project in my Business Ethics course. He taught everyone under him a lot about running a business with integrity and ethics. By the time I got into management, we were on the second GM. I was lucky in that I applied at an excellent property that had two excellent General Managers during my time there. Beyond's sales pitch is "Why should a merchant pay CC charges so some "bleep" can fly for free.My first "real" job after college was working in a hotel. In my view the fees are simply a sales/marketing ploy to get more merchants. The fee charges are the brainchild of Beyond CEO Robert O Carr. Beyond has been successful in selling this charging concept in California and nationally as well and unfortunately it is legal. I have a friend "Steve" that sells CC processing for a company called Beyond.
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