...Since in this case its not an auction the seller can charge whatever he wants including fees to recoup the money lost. He can send the bill to someone for 21.00 + 3% if he wants to. Nothing against doing that. Its no different than people on Ebay charging $10 to ship something and it only costs them $2.50 to ship it
Now if its sent as a gift (basically just transferring money) if you use a checking account or a paypal balance there is no fees. Hence the reason when I sell something here I always say "send as gift so no fees". If the person sending the money uses a credit card, then THEY pay the 2.9%+30 cents...
Well, that's not how my Visa/MC contract reads. Now true, it's been a long time since I've gone back and read it. But I find it hard to believe that it has changed that much. The big key provisions in the merchant agreement that have always stuck in my head are as follows.
If you accept Visa/MC, you...
1) Must accept the exact same amount from Visa/MC customers that you would from your cash paying customers. You are
not allowed to upcharge to recover fees that you wouldn't also charge a cash paying customer. If it cost a cash customer 25 bucks... it better cost a Visa/MC credit card customer 25 bucks.
2) You
may not set a minimum purchase amount for Visa/MC customers. If you would sell an item or service for 25 cents to a cash customer, you must also accept Visa/MC for that same sale... without any additional fees.
These are the rules that merchants
must abide by to remain in good standing with Visa/MC. Of course, there are more rules than that. But these two are material provisions in the merchant agreement.
The settlement from several years back did not change this. That was in reference to customers using debit cards. The merchant can now require the customer to enter their pin number... which means the customer pays the trans fee instead of the merchant. But even at that, the merchant must give 30 days written notice to the processing company before they can do this. And again, that's only for debit cards, credit cards are unaffected.
The fact that you see people charging extra fees or enforcing "minimum purchase" amounts doesn't mean it's okay... it's not. It just means that they haven't been turned in yet. The only entities that are allowed to upcharge or enforce minimum amounts are government entities (which is a different agreement). Private entities caught doing so are in danger of losing their privilege to accept Visa/MC.
I don't accept PayPal, so I can't speak to their merchant agreements. But I can't imagine that it would be much different. Like I said, I don't read my merchant agreement weekly. But I can't imagine that they would surrender the two provisions above.
It all boils down to Visa/MC must be treated equally with cash. Why would Visa/MC
ever back down from that position?
Cheers