Monetary Authority reminds about illegality of credit card surcharges

Vendors are not supposed to charge their clients any surcharge based on the choice to settle the bill by credit card, the Monetary Authority of Macao (AMCM) said in a reply to an enquiry made by the Times.
Credit card surcharges are not a new practice for many trades in Macau. For example, it has been an open secret that some gadget retailers charge their customers a surcharge between 1% to 2% of the selling price when the customer chooses to pay with their credit card.
On this, the Times sent the same enquiry to three government entities: the Consumer Council (CC), the Economic and Technological Development Bureau (DSEDT) and the AMCM.
The authorities were asked whether this surcharge is illegal, and if so, pursuant to which law?
The enquiry also asked if the entities had regularly conducted checks on such malpractice.
“According to the contract made between banks and vendors, the latter shall not ask customers for surcharges on bills settled by credit card,” the AMCM noted in its reply.
With regard to whether authorities have conducted regular checks against the malpractice, the AMCM bypassed the question and transferred the responsibilities to the banks.
“The AMCM has always required banks to clarify to vendors about the relevant provision in the contract. If any violation is found, banks are entitled to issue warnings to vendors or even terminate the service,” it disclosed in the reply.
The other two government entities, the CC and the DSEDT, did not provide a response to the enquiry, nor have they offered supplementary information following the AMCM’s response by press time.
However, in an article posted online by the CC in 2012, the Council stated that if consumers were required to pay a surcharge when they pay their retail bills by credit card, they could file a complaint to the CC.
The CC added that pursuant to the Decree-Law No. 16/95/M, such surcharges are prohibited.
The Times asked the CC in the same enquiry to confirm if the contents in this article are still valid, but no response was received by press time. AL