Can They Charge a Use Fee When Paying by a Credit Card?

A surcharge or checkout fee for using a credit card is usually illegal, but that doesn't mean merchants don't do it anyway. Passing along surcharge fees to consumers is expressly illegal in 10 states and many credit card companies have policies forbidding the practice. A consumer must remain vigilant when paying with a credit card to ensure a merchant or vendor doesn't assess any unfair charges.

Credit Card Policies
Some major credit card companies, including Visa and MasterCard, usually have clauses in vendor agreements that prohibit businesses from charging convenience or usage fees to customers using credit cards. Credit card companies don't actively enforce these policies, so ensuring businesses adhere to these regulations is up to each consumer. Some credit card companies do allow businesses to offer discounts to consumers paying with cash or a proprietary card. Other credit card companies, including Discover, allow merchants to charge usage fees to customers provided that the fee charged to consumers does not exceed the fee assessed by Discover and that this surcharge applies to all cards. This, of course, creates a conflict with other existing vendor agreements.