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As a company based in California, we accept credit card as a…

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As a company based in...
As a company based in California, we accept credit card as a form of payment, but the majority of our clients issue POs. We get charged about 2.5% from the credit card processing company for transactions. I believe as a company we can charge a convenience fee to recoup some of that money. What can we legally charge to try to recoup the processing fees we have to pay the credit card company?
Submitted: 5 months ago.Category: Finance
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Answered in 2 minutes by:
3/7/2018
Financial Professional: Gerald, Esq, Attorney replied 5 months ago
Gerald, Esq
Gerald, Esq, Attorney
Category: Finance
Satisfied Customers: 5,455
Experience: Over 30 years of experience.
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Hello,
Thank you for using Just Answer. Please bear with me while I review your question. I will respond fully shortly. Thank you for your patience.

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Financial Professional: Gerald, Esq, Attorney replied 5 months ago

Hello,

Thank you for your patience and thank you for using Just Answer. I want to provide you the best service I can. Please feel free to ask any follow-up questions you have.

I am an attorney with 30 years of experience; I hope to provide you information that will help you in resolving your question.

Under california Law you may charge a convenience fee so long as you provide adequate Notice that you are charging the fee and identifying the reason for the fee.

California had passed a law to prohibit such fees, but that was determined by the courts to be unenforceable.

See:

https://oag.ca.gov/consumers/general/credit-card-surcharges

There is no set amount as to what you can charge, but if you are claiming that the charge is to offset the processing fee it should not exceed that fee. Otherwise you are engaging in a fraud.

Please note that your merchant agreement may prohibit you from charging such a fee - you need to look at your specific agreement to determine that.

One way that merchants avoid this issue is to provide a discount for non-credit transactions.

I hope the information I provide is useful to you. I want you to be comfortable and satisfied with my attempt to assist you. Please, if you have ANY follow-up questions, feel free to ask.

If you ask a follow-up question and I do not respond immediately, it is because I am temporarily unavailable. I promise to respond as soon as I return. Please note that I am often unavailable Friday evening through Sunday.

Please do not forget to give me a positive rating. It adds nothing to your costs but helps me greatly. Thank you.

If you are dissatisfied with my response, PLEASE let me know before giving me a negative review so that I may try to be of better assistance. Or, if you prefer, let me know and I can “Opt Out” and your question can be re-posted without additional cost to you. I will be fair to you, and only ask the same from you.

Good luck.

Please note: Information is educational and not given as legal advice. Only your local attorney can give legal advice. I can't establish or accept an attorney-client relationship with you. All posts are available for public viewing.

Kind regards,

Gerald

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