Scam Prevention
Illegal Surcharges
It has come to our attention that many payment processing companies have deliberately misinformed Connecticut Business Owners regarding illegally adding a surcharge on a credit card payment. Most Merchant agreements with credit card issues prohibit merchants from applying a surcharge on credit cards, debit cards, and prepaid cards in states that prohibit such surcharges. Some Business Owners are unlawfully offering discounts to buyers to induce such buyers to pay cash, debit card, check, or similar means rather than by credit card.
Do not accept this agreement, as this practice is prohibited (ILLEGAL) in Connecticutas well as California, Colorado, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma, Texas, and Puerto Rico. Business Owners in Connecticut, CAN NOT charge customers a “Surcharge”, “Convenience Fee”, “Service Fee”, or “Processing Fee” for using a credit card to cover the expenses of your business Merchant Service fees when customers use their credit cards to make purchases.
CT STATE STATUTE – CHAPTER 739
TRADING STAMPS, MAIL ORDERS, FRANCHISES, CREDIT PROGRAMS AND SUBSCRIPTIONS
Sec. 42-133ff. Surcharge based on method of payment prohibited. Acceptance of bank credit card bearing a trade name. Discount not prohibited. Contracts not to prohibit discounts based on method of payment for gasoline. Minimum purchase policy. Purchase of travel services using a credit card.
(a) No seller may impose a surcharge on a buyer who elects to use any method of payment, including, but not limited to, cash, check, credit card or electronic means, in any sales transaction.
https://www.cga.ct.gov/current/pub/chap_739.htm
VISA SUPPORT STATEMENT
Q. Is a merchant allowed to add a surcharge to the purchase amount for using a Visa card?
A. In general, no. Surcharging is currently permitted in Australia, Mexico, and New Zealand, and on certain credit card transactions in the U.S.Surcharging isn’t allowed everywhere in the U.S. Currently, there are laws limiting surcharging in Colorado, Connecticut, Kansas, Maine, Massachusetts, NewYork, Oklahoma, and Texas. California’s and New York’s laws limiting surcharging have been enjoined from enforcement pursuant to court orders, but appeals are pending.
https://usa.visa.com/support/consumer/visa-rules.html