this is the reply i received from MC regarding my letter…
When a merchant chooses to accept MasterCard as form of payment, the merchant signs a MasterCard Merchant Agreement with its bank (referred to as the acquiring bank) to do so. One of the rules within the MasterCard Merchant Agreement states that a merchant must not directly or indirectly require any MasterCard cardholder to pay a surcharge in connection with a MasterCard card transaction. A merchant may provide a discount to its customers for cash payments.Also, a merchant is permitted to charge a fee (such as a bona fide commission, postage, expedited service or convenience fees, and the like) if the fee is imposed on all like transactions regardless of the form of payment used.
The rule above is just that, a rule or condition of acceptance, as opposed to a law. Whenever it comes to our attention that a merchant that accepts MasterCard is in violation of one of our rules, we work through the merchant’s acquirer to bring that merchant back into compliance. With nearly 30 million locations where MasterCard cards are accepted around the world it is necessary for us to work through our network of acquiring banks when exercising this process. Thank you for bringing to MasterCard’s attention your belief that a merchant is in violation of this rule. We will investigate and follow up as appropriate.
As you point out, there are also state laws in various states that address the issue of surcharges for the use of card-based payments, in some cases preventing them. These laws are not enforceable by MasterCard, but rather through the states’ various Offices of the Attorneys General. By way of your communication with MasterCard, we will look into the issue you raise with respect to MasterCard rules. If you would like to pursue enforcement of any laws, you may wish to direct your inquiry to your state’s Attorney General.
While I am unable to comment on the status of a relationship or investigation regarding a merchant that accepts MasterCard, I hope this email helps to clarify the process that is taking place. Thank you again for bringing the issue to our attention and let me know if I can be of further assistance.
