Can Schools ask for 3% additional Charge while paying fees via credit card on POS directly ?

[vrp.vijayot]

TF community,

I wish to know if schools can Charge additional 3% while paying fees via credit card on POS directly ?
And if this 3% additional charge is legal ? They are naming this as Convenience Fees. Is MDR or Convenience Fees both are same ?
Similarly i faced the same situation in Gold Shops like Jos alukaas, Pharmacies, MRF stores and several other shops as well.
Can someone throw some light on the additional charges part and if they are legal and who should actually pay this and if they can ask customers to pay ?

Note: School uses Federal Bank for their Banking

thanks !

 

[hender]

TF community,

I wish to know if schools can Charge additional 3% while paying fees via credit card on POS directly ?
And if this 3% additional charge is legal ? They are naming this as Convenience Fees. Is MDR or Convenience Fees both are same ?
Similarly i faced the same situation in Gold Shops like Jos alukaas, Pharmacies, MRF stores and several other shops as well.
Can someone throw some light on the additional charges part and if they are legal and who should actually pay this and if they can ask customers to pay ?

Note: School uses Federal Bank for their Banking

thanks !

They don't want to BEAR any charges 😞, they are asking flat 3% to demotivate parents to use CC method.

 

[BVCBVC is verified member.]

TF community,

I wish to know if schools can Charge additional 3% while paying fees via credit card on POS directly ?
And if this 3% additional charge is legal ? They are naming this as Convenience Fees. Is MDR or Convenience Fees both are same ?
Similarly i faced the same situation in Gold Shops like Jos alukaas, Pharmacies, MRF stores and several other shops as well.
Can someone throw some light on the additional charges part and if they are legal and who should actually pay this and if they can ask customers to pay ?

Note: School uses Federal Bank for their Banking

thanks !

Usual MDR charges by bank would be around 1.5%-2%. But 3% means they don't want you to use CC for spends. For large spends some banks waive off MDR charges too.

 

[msd07]

In the recent times, except in vehicle showrooms, i have not seen this kind of extra charging in any big shops..

 

[rajcasio]

TF community,

I wish to know if schools can Charge additional 3% while paying fees via credit card on POS directly ?
And if this 3% additional charge is legal ? They are naming this as Convenience Fees. Is MDR or Convenience Fees both are same ?
Similarly i faced the same situation in Gold Shops like Jos alukaas, Pharmacies, MRF stores and several other shops as well.
Can someone throw some light on the additional charges part and if they are legal and who should actually pay this and if they can ask customers to pay ?

Note: School uses Federal Bank for their Banking

thanks !

MRF....YES...my personal experience

 

[Cosmicgaze]

Most shops who expect customers would be using credit cards often factor the mdr charges into pricing, some shops that have usual cash or upi transactions they don’t factor in neither do they want to provide it for convinience.
While the merchant terms state that they can offer discounts for cash or other modes payment they also ask not to charge customer over the price for fees.