Legal Question in Credit and Debt Law in California

Processing Fee's

Hi, I�m under the understanding that within the State of California, retailers are not allowed to charge a fee for using a credit card as form of payment. Now if this is correct then are they allowed to call it a �Processing Fee� and charge you a surcharge to use your credit card as payment? To me it is the same thing just named differently. Is this legal?


Asked on 5/05/05, 5:14 pm

1 Answer from Attorneys
Jonas Grant Law Office of Jonas M. Grant, A.P.C.

Re: Processing Fee's

See CA Civil Code 1748.1 - surcharges charged by private (non-govt) retailers are illegal.

Per the statute, you can sue, and also report this to the credit card company (and get that fee charged back), as it usually violates the merchant's agreement with the credit card processor.

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Answered on 5/05/05, 5:54 pm


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