Application of Surcharges and Minimum Transaction Amounts to Card Transactions
A critical aspect of the Bankers Association’s mandate is to empower the general public through education and awareness building in the area of finance and banking. To this end, we
want to address the practice of card merchants applying surcharges and minimum transaction amounts to card transactions.
While this practice is allowed in the United States and its territories, it is not permitted in our region.
Visa Core Rules and Visa Product and Service Rules dated 23rd April 2022, which are applicable to our
jurisdiction state:
- With the exception of credit card transaction originating in the US Region or a US territory, a Merchant must not establish a minimum or maximum transaction amount as a condition for honouring the card.
- With the exception of credit card transactions originating in the US Region or a US territory, a Merchant must not add any amount over the advertised or normal price to a transaction, unless applicable laws or regulations expressly require that a Merchant be permitted to impose a surcharge.
Any surcharge amount, if allowed, must be included in the transaction amount and not collected separately.
Should you encounter any instance in which a card merchant applies a surcharge or minimum transaction amount, please report the incident to that merchant’s bank. The merchant’s bank logo will be displayed on the card machine.
We take this opportunity to remind all card merchants that every effort should be taken to adhere to your card issuer rules and protocols. As such, we ask that the practice of applying surcharges and minimum transaction amounts to card transactions be discontinued to avoid penalties.
Thank you in advance for your cooperation.
1st National Bank St. Lucia Limited First Citizens Investment Services Limited.
Bank of Saint Lucia Limited Republic Bank EC Limited
Capita Financial Services Inc. Sagicor Finance Inc.
CIBC FirstCaribbean International Saint Lucia Development Bank
Financial Investment and Consultancy Services Limited St. Lucia Mortgage Finance Company Limited