Have you ever been on a dive
trip, pulled out a credit card, and
been told that you must pay a
surcharge if you aren’t paying
cash? It’s not an uncommon
practice. Credit card companies
charge merchants a fee that may
run as high as 4 percent of the bill
when the customer uses the card,
and some merchants try to recoup
it by passing it on to you.
If they do, however, they are
breaking their agreement with the
companies, and you don’t have to
stand for it.
Reader James L. Waller (Sioux
Falls SD), on a trip to the Philippines,
wrote that “my high opinion
of Atlantis Resort soured when they
cheated me out of $27 on my bill
when I checked out. Atlantis (and
many other Philippine hotels)
charges 5-10 percent for using a
credit card, a detail they neglect to
tell you when you check in.”
When Undercurrent publisher
Ben Davison was in the Turks and
Caicos Islands last May, the
proprietor of the Mt. Pleasant
Guest House told him he would
have to pass on the 5 percent bank
charge if he used his credit card.
Reader Doug Burch, who
frequently takes groups from his
Pennsylvania dive shop to New
Providence Island in the Bahamas,
complained to us that he had to
pay a surcharge and asked us to
look at the legality of the practice.
To understand the credit card
companies’ policy, we talked to
officials at both Visa and
MasterCard, who told Undercurrent that charging extra to use a credit
card is a clear violation of their
agreements with merchants —
worldwide. Their agreement
allows a merchant to give a
discount from the advertised prices for cash, but they may not
raise the advertised price or the bill
if one decides to use a credit card.
Reader Burch told us that for
many years he used Dive Dive
Dive in Nassau. He says he no
longer does because they insist on
tacking a 5 percent surcharge on
his Visa bill, in his view a clear
violation of Visa’s participating
merchant agreements. Burch
didn’t take the hit to his wallet
sitting down — and neither
should you.
The first year, Burch says he
was unaware of the surcharge until
he noticed it on his credit card
statement. He called Visa International
and filled out forms to have
the charge reversed. Visa assured
him that they’d direct Dive Dive
Dive to stop the practice. But the
same thing happened on subsequent
trips, as well.
So Burch demanded each
time that the surcharge be
dropped before he signed his
charge slip, until finally Dive Dive
Dive’s manager directed the desk
clerk to just stop surcharging his
bill. For the next couple of years
all went smoothly, and Burch
became less diligent about
checking his bill. Then, in 1997,
he found a $43 surcharge on his
credit card statement and again
called Visa International for an
adjustment. This time, the folks at
Visa requested a copy of the
charge slip, and then told Doug
that since he had signed it, they
could not refund the extra 5%.
But in our conversations with
the credit card companies, they
both insisted that cardholders
may still dispute charges even
after signing a credit card slip.
Both advise that the cardholder
should first contact the bank that
issued his or her card (by calling
the toll-free number shown on the
credit card statement) to open a
formal dispute process. From
there, procedures may vary from
bank to bank, but the credit card
policies remain consistent.
Of course, you should first try
to get the charges dropped at the
point of purchase. Tell the person
who hands you the bill that the
charge is against the policy of the
credit card company and you
won’t pay it. If they ignore you and
say you must sign — or if you fail to
notice the surcharges until your
statement arrives — file a dispute,
and don’t take no for an answer.
Oh, and while you’re at it,
demand that the credit card
company’s enforcement division
bring the merchant into compliance
with its stated policies.
In our conversation with Dive
Dive Dive, an owner told us that
their prices are quoted with
discounts for cash or traveler’s
checks. “It has been our policy for
twenty years, and people are told
that. If they don’t want to pay the
5 percent extra, they can pay cash.”
Burch sticks to his story that not
only was it a surcharge, but he
wasn’t informed in advance.
While Dive Dive Dive claimed
that Visa policies against surcharges
were not in effect in the
Bahamas, Visa told us this policy is
a uniform, worldwide policy
applying to all types of merchants.
Anyhow, Burch is out $43.
And Dive Dive Dive has lost
valuable repeat business.
P.S.: When I called Mt.
Pleasant Guest House to ask
proprietor Brian Sheedy about his
policy, he insisted that it was not
his policy to add a surcharge to
credit card charges. “There’s no
way anybody got charged that 5
percent on a credit card.” Ben
didn’t; rather than pay the
surcharge, he paid cash.
— D.L.