Friday, May 18, 2007

Finance: Credit Card Processing: Legally Beat the System by Passing

Imposing surcharges on credit card transactions is illegal, and it
will only lead to problems. The secret to beating the credit card
processing system is not charging more for credit card sales, but
instead is charging less for cash sales. It may sound like the same
thing, but there is a big difference.

The increasing costs associated with accepting credit cards are
leaving many merchants searching for ways to pass along at least a
portion of processing expenses to their customers. Card originators
such as VISA and MasterCard are becoming wary of this new trend and
are enforcing strict regulations specifically designed to hinder any
such efforts by merchants to impose surcharges on credit card
purchases.

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