Visa International and MasterCard International Operating Regulations prohibit any form of surcharging. That is very specific in every Merchant Agreement signed between the affiliate bank and the merchant honoring the card. The affiliate or “Merchant Acquirer” is the bank that gives authority to the business establishment to honor credit card transactions.
One of our readers mentioned that Parramatta Council regularly adds a surcharge on card transactions. This practice is a direct violation of the Merchant Agreement, unless the Merchant Acquirer gave the Council a written authority to surcharge. If that is the case, the Merchant Acquirer is in violation of Visa and MasterCard International Operating Regulations.
The cardholder should write an official complaint to the bank that issued his/her credit card. The letter should be accompanied by the credit card transaction receipt issued by Parramatta Council. The receipt should indicate that there was indeed an additional fee charged for using the card. The bank that issued the card will then ‘chargeback’ the amount to Parramatta Council and the cardholder’s account will be credited. – ?