Are there any lease related fees, charges, or payments that can be made with a credit card without having to pay processing fee? Thanks, fellow hackers.
Only mom-and-pop businesses charge processing fees. Dealers don’t.
Hell, I just put all my msds on my cc
Policies vary by dealer. But not unheard of to put $5k to as much as $10k on a credit card.
I read about someone who put $80k on 3 different cards with no fee when buying a car. I think the dealer wanted the money and he couldn’t get a cashiers check in time.
Dealer only allowed up to $2500 to put on card (MSDs) and rest had to be check…
I guess every dealer is different.
This.
Of the DAS amount one dealer might let you charge $1,500, another dealer $2,500, and another dealer $5k. It’s completely arbitrary and varies by dealer.
It’s really all over the place. I had a dealer that didn’t want to do a one pay lease on a credit card and was able to convince them to do it by offering to split the merchant fee. Another dealer had a $2,500 limit but had no problem just splitting the cost between two cards.
Technically they can’t charge processing fees. The can only phrase it as discount with a check or cash, but if they phrase it as a surcharge, they can get into deep shit with the card brands.
Technically that is true, in reality they are telling you they are charging fees.
I personally haven’t seen any ‘restrictions’ passed to Vendors when they don’t follow this rule.
that’s because most customers are not going to start a stink over this. But if someone gets a bug up their ass they can create issues for the vendor.
Ask for those fees to be put on the invoices as a credit card surcharge and if the vendor is stupid enough to do that, you can get your bank to refund you the money. Not really going to debate the ethics of this, but it’s certainly doable.
No debate here, Dealers do things like Run your Credit without permission (which should have stiffer penalties) and the CC companies honestly care about 2 things.
- Did you pay your fees
- How many Chargebacks do you have.
I’ve made complaints and they have gone into the bit bucket of ‘we will send them a nasty letter’ but a CC Processor doesn’t enforce a rule that will not make them money.
Now maybe if you get that inflated to a class action will someone take notice, but the ‘fight’ you will do on a single dealer isn’t worth it. If say you got to 5 dealers daily and they do this, you got some skin, but unless the dealer doesn’t tell you about the ‘fee’ and adds it, then you have a nice uphill fight.
They can, aside from in a few states. Quote:
Since Jan. 27, 2013, merchants have had the ability to assess a surcharge on customers who pay with credit. However, if they choose to take this step, there are a lot of rules that must be followed, including:
-
Notifying consumers that they’re being charged for using credit, both at the register and on the receipt. On the receipt, the merchant is required to state the exact dollar amount you paid in credit card surcharges.
-
Charging customers only what they’re paying to the credit card payment networks in swipe fees (again, this is usually around 1%-3.5% of the cost of the transaction). In other words, merchants are allowed to pass on the fee to the customer, but aren’t allowed to make a profit on credit card surcharges.
-
Staying on the right side of state laws. As of August 2014, nine states prohibit retailers from passing credit card surcharges onto consumers. They are: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, Oklahoma and Texas.
-
Limiting surcharges to credit card transactions. If you pay with debit, the retailer isn’t allowed assess the fee. This includes debit transactions where you sign for your purchase as opposed to entering a PIN. Only credit card users can be hit with a surcharge.
Hmmm… I honestly thought it was a VISA/MC rules and not state laws. Good to know. Although it seems that the list of states where it’s illegal completely is longer than your post, and includes NY, which is where was the last time I’ve dealt with this issue. Are Credit Card Convenience Fees Legal? - NerdWallet
Call CC card and complain. They will be on dealer’s donkey right away.
I charged full MSDs on my credit card. Finance guy told me they don’t like doing card charges sometimes as it opens them up to charge backs. He also told me that around $3500 or so the fee percentage the credit card company charges go up
I have never seen a CC Processor contract written up like this.
- Type of Card
- Amount of Chargebacks
- Time before deposit of funds
But never ‘how much you accept will cause the fees rate to rise’.
I asked him the same thing. Maybe it was just a line they used