This story idea came from members of the public, like you, who contacted us. Send us all your questions about the new credit card surcharge. We’re listening: ask@cbc.ca.
You asked, we listened.
Our last article answering credit card surcharge questions generated a lot of followers, so we’re back with more answers about the extra fees you might see when you use your Visa or MasterCard.
Will businesses have to notify customers that the surcharge is being applied?
Companies that apply the surcharge must make it clear to customers that they are doing so, and there is a strict protocol.
For brick-and-mortar businesses, merchants will need to make sure they have a sign on the door saying they intend to apply a surcharge for credit card transactions, said Corinne Pohlmann, vice president senior national affairs and associations at the Canadian Federation of Independents. Companies (CFIB).
“We’re actually creating some templates right now to help companies make sure they’re in compliance,” he said.
A second credit card surcharge sign must be present at the point of sale, which must also specify the amount that will be charged for using Visa or MasterCard.
In addition to the sign, the dollar amount of the surcharge should appear on the transaction receipt provided by the merchant to its customers, according to Luciana Brasil, a partner at the Vancouver law firm Branch MacMaster, who worked on the lawsuit with class which led to the settlement.
Online transactions should have a warning as you click on the transaction part before completing the payment, Pohlmann explained. The surcharge, if applied to the online transaction, also appears on your receipt.
Some companies have already notified customers of their intention to start applying a credit card surcharge, including telecommunications provider Telus. You won’t see this in Quebec, however, because customers there are protected from the surcharge under the province’s Consumer Protection Act.
Will the surcharge be added before or after tax?
Under the recent agreement, the surcharge will be added before taxes, Brazil said.
When you return an item you purchased, will the surcharge be refunded as well?
The short answer is yes.
If you were charged a surcharge during a purchase and choose to return that purchase, you will be refunded the surcharge.
“A full refund requires a refund of the full surcharge, while a partial refund only requires a refund of the relevant portion of the surcharge,” Brazil explained.
Will all card companies play by the same rules?
At this time, only Visa and MasterCard are allowed to charge, because they were the two companies involved in the class action. American Express and other credit cards were not part of the lawsuit or settlement.
“To the extent that merchants wish to top up credit cards issued by any other credit card service provider, they should consult that provider and their rules to ensure that this is permitted,” Brazil said.