Merchants Reminded About Violating Discount Rules with Debit and Credit Cards

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Effective on September 28, 2011, Maine’s revised Truth-in–Lending Laws (Title 9-A M.R.S.A.§ 8-509(1)) need to be understood by retailers to avoid violating the surcharge and discounting rules.  While a merchant’s may offer discounts to consumers to encourage them to use alternative forms of payment in lieu of debit or credit cards; a seller in a sales transaction may not impose a surcharge on a cardholder who elects to use a credit or debit card in lieu of payment by cash, check or similar means.

  • A surcharge is an increase in the “regular” price to a card holder that is not imposed on a customer paying by cash or check.
  • A discount, on the other hand, is a reduction made from the “regular” price and, by definition, does not result in a surcharge.

 

Merchants should clearly display the amount of the regular price and the amount of the discounted price.  See the July 12, 2011 Notice from the Bureau of Consumer Credit Protection and the Bureau of Financial Institutions.