No. of Recommendations: 0
>> I just used my card to pay for a medical bill today, and the office told me that they were going to charge me 5% because I was using my credit card!! I griped about that (since I will pay it off the end of the month and I am essentially paying cash as far as I'M concerned) and they didn't charge me.

Does anyone out there know if it is or it isn't legal for a company to do that? I was perturbed by the surcharge to begin with, but FIVE PERCENT? Don't the CC companies charge between 1-2 % to the vendor? <<

5%? Ouch, that _is_ steep! Unfortuantely, it's legal. A merchant is not obligated to accept credit cards, so they're free to add any fees they like.

Sure, the CC company may only charge the merchant 1-2%. But, they might take as long as three months to reimburse the merchant! The surcharge encourages you to pay by check which means the merchant gets the money _today_ instead of 90 days later. I suspect your doctor may have a tight cash flow. He/she may have little cash but large expenses that need to be paid _today_ and can't wait 3 months.

Most retail merchants won't charge a surcharge because it makes them less competitive. Folks tend to pay closer attention to price when buying a new pair of Levis than when getting a root canal. "Comparative shopping" is not something a lot of people do with doctors. Your doctor seems to be taking advantage of that fact.

My hat's off to you for getting things your way. A little complaining will often pay off.

Print the post  


UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.