Author Topic: Credit Card Surcharge  (Read 30734 times)

phoenix

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Credit Card Surcharge
« on: April 23, 2006, 10:58:06 am »
Hi All,

I believe others have brought this up before. Quite a number of clients looking at putting in Virtuemart as their webshops have asked about adding a surcharge (percentage not fixed dollar amounts) for credit card payments.

I think this would be a useful and important addition.

Kelvin

LongBranchAssociates

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Re: Credit Card Surcharge
« Reply #1 on: April 23, 2006, 14:36:26 pm »
Folks

This is Illegal in the US.  Federal law prohibits charging a different rate for Credit Card purchases over Cash, Checks or similar forms of payment

It is common practice to charge a surcharge in Europe for Credit Card purchases as it is not Illegal to do so in Europe

US based VirtueMart users > Do not charge a surcharge on Credit Card purchases or the Feds will be knocking on your door!
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phoenix

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Re: Credit Card Surcharge
« Reply #2 on: April 26, 2006, 02:04:14 am »
In Australia, this is perfectly legal.

As a matter of fact, more and more online merchants here are beginning to introduce this onto their web shops as this helps to keep the perception of lower prices. Online merchants who don't charge a surcharge on credit card transactions almost always build that cost into the selling price of the products anyway, which at first glance might give casual browsers the impression their prices are less competitive.

This is obviously a matter of choice for the web vendor but having that capability in the credit card payment module would be most useful for those that need it.

Kelvin

sumwatt

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Re: Credit Card Surcharge
« Reply #3 on: May 11, 2006, 04:15:06 am »
Actually, it isn't illegal in the US per se. It is illegal in California but Visa and MC are the ones who dictate those policies in the US. In other countries, there are nationwide laws that allow for such charges.

LongBranchAssociates

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Re: Credit Card Surcharge
« Reply #4 on: May 11, 2006, 06:01:37 am »
Actually, it isn't illegal in the US per se. It is illegal in California but Visa and MC are the ones who dictate those policies in the US. In other countries, there are nationwide laws that allow for such charges.

I will do more investigation.  I read an article saying it was illegal to charge a different price for an item to a Credit Card purchaser over a cash purchaser

Further, I use my Credit Cards all the time, and have for the last 25 years in the US, and never experienced being charged a Surcharge for the use of my Cedit Card anywhere in the USA and I have visited nearly every State.  I have never been charged a surcharge for any item I have purchased Online from a  US vendor and I purchase online regularly, including airline tickets.  In Europe most airlines have a Credit Card surcharge.  With the current state of the finances of US airlines I feel sure that they would charge a surcharge on Credit Card purchases if they were allowed to
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myth2112

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Re: Credit Card Surcharge
« Reply #5 on: May 12, 2006, 17:54:19 pm »
Folks

This is Illegal in the US.  Federal law prohibits charging a different rate for Credit Card purchases over Cash, Checks or similar forms of payment

It is common practice to charge a surcharge in Europe for Credit Card purchases as it is not Illegal to do so in Europe

US based VirtueMart users > Do not charge a surcharge on Credit Card purchases or the Feds will be knocking on your door!

I used to do it at my old company, it was a wholesaler with very low margins.  Definitley not illegal

LongBranchAssociates

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Re: Credit Card Surcharge
« Reply #6 on: May 14, 2006, 01:23:47 am »
For more definitive information on Credit Card Surcharges in the US Click on the Link below

http://www.creditinfocenter.com/cards/crcd_buy.shtml#Question6



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monkeywrencher

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Re: Credit Card Surcharge
« Reply #7 on: May 25, 2006, 05:11:16 am »
Having a surcharge for credit cards isnt illegal anywhere. In the US however most providers require you do not have a surcharge to use CCs. One way I see people get around this all the time is don't say CC surcharge, but rather cash discount. Gas stations do it all the time, its all in the marketing :)

LeoFish

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Re: Credit Card Surcharge
« Reply #8 on: May 30, 2006, 10:37:22 am »
How about Canada? Any one knows...

Should I charge extra fee to buyers who sending $ thru paypal?

laurie_lewis

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Re: Credit Card Surcharge
« Reply #9 on: June 04, 2006, 12:54:13 pm »

How about some pointers, for us that want to put on surcharges, on how we can do it?

PLEASE 

or even better - how we can give discounts by % rather than fixed sums for other forms of payment - the incentive thing   ;D ;D ;D

Shibumi

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Re: Credit Card Surcharge
« Reply #10 on: June 07, 2006, 08:31:11 am »
From what I know in Canada, a large majority of companies charge a 3% cc surcharge on purchases, and I think it is more because the Credit Card companies charge the merchant a 3% surcharge for their services - a "convenience fee" or something like that... if you ask me, it should be abolished... these CC Comanies already make a killing with their interest rates as it is, plus a 3% surcharge???

Anyways, regardless of that, any suggestions as to how to charge an extra 3% on check out?  What are others doing with regards to cc surcharges?
Jeff
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mariusvr

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Re: Credit Card Surcharge
« Reply #11 on: September 14, 2006, 11:10:29 am »
Open the paypal payment module and go to the configuration tab. then change the line:

"amount" => round( $db->f("order_subtotal")+$tax_total-$discount_total, 2),

to:

"amount" => round( (($db->f("order_subtotal")+$tax_total-$discount_total)*1.024)+0.3, 2),

Change the title of the module to say that there is a surcharge. This instance it will add 2.4% and 30 cents (standard Paypal charge)

Cheers, Marius

Shibumi

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Re: Credit Card Surcharge
« Reply #12 on: September 14, 2006, 15:56:37 pm »
Cool stuff Marius... havent tested this yet, but looks good!
Jeff
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mariusvr

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Re: Credit Card Surcharge
« Reply #13 on: September 17, 2006, 04:19:07 am »
Before this hack will work, the total in virtuemart will need to be updated. Otherwise the system will think that too much money has been paid through paypal. (and IPN will fail).

Code: [Select]
$db4 = new ps_DB;
$db4->query("UPDATE #__vm_orders SET order_total = ".round( (($db->f("order_subtotal")+$tax_total-$discount_total)*1.024)+0.3, 2) ." WHERE order_id='".$db->f("order_id")."'");

This has been added to solve the problem. I have also included my complete config code, as it inlcudes a hack that send the user information to paypal (so they don't have to keep on filling out their address details.

Cheers, Marius

Code: [Select]
<?php

$db3 
= new ps_DB;
$db3->query("SELECT * FROM #__vm_user_info WHERE user_id='".$db->f("user_id")."'");
$db3->next_record();

$url "https://www.paypal.com/cgi-bin/webscr";
$tax_total $db->f("order_tax") + $db->f("order_shipping_tax");
$discount_total $db->f("coupon_discount") + $db->f("order_discount");
$post_variables = Array(
"cmd" => "_xclick",
"business" => PAYPAL_EMAIL,
"receiver_email" => PAYPAL_EMAIL,
"item_name" => $VM_LANG->_PHPSHOP_ORDER_PRINT_PO_NUMBER.": "$db->f("order_id"),
"order_id" => $db->f("order_id"),
"invoice" => $db->f("order_number"),
"amount" => round( (($db->f("order_subtotal")+$tax_total-$discount_total)*1.024)+0.32),
"shipping" => sprintf("%.2f"$db->f("order_shipping")),
"currency_code" => $_SESSION['vendor_currency'],
"image_url" => $vendor_image_url,
"return" => SECUREURL ."index.php?option=com_virtuemart&page=checkout.result&order_id=".$db->f("order_id"),
"notify_url" => SECUREURL ."administrator/components/com_virtuemart/notify.php",
"cancel_return" => SECUREURL ."index.php",
"undefined_quantity" => "0",
"test_ipn" => PAYPAL_DEBUG,
"pal" => "NRUBJXESJTY24",
"no_shipping" => "1",
"no_note" => "1",
"first_name" => $db3->f("first_name"),
"last_name" => $db3->f("last_name"),
"address1" => $db3->f("address_1"),
"address2" => $db3->f("address_2"),
"city" => $db3->f("city")
);

$db4 = new ps_DB;
$db4->query("UPDATE #__vm_orders SET order_total = ".round( (($db->f("order_subtotal")+$tax_total-$discount_total)*1.024)+0.32) ." WHERE order_id='".$db->f("order_id")."'");


if( 
$page == "checkout.thankyou" ) {
$query_string "?";
foreach( 
$post_variables as $name => $value ) {
$query_string .= $name"=" urlencode($value) ."&";
}
mosRedirect$url $query_string );
} else {
 
echo 
'<form action="'.$url.'" method="post" target="_blank">';
echo 
'<input type="image" name="submit" src="http://images.paypal.com/images/x-click-but6.gif" border="0" alt="Make payments with PayPal, it is fast, free, and secure!">';
 
foreach( 
$post_variables as $name => $value ) {
echo 
'<input type="hidden" name="'.$name.'" value="'.$value.'" />';
}
 
echo 
'</form>';
 
}
?>


Shibumi

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Re: Credit Card Surcharge
« Reply #14 on: September 17, 2006, 17:23:11 pm »
Okay, so I take it this hack goes in the Paypal payment method configuration window, correct?  And I take this hack will automatically register that user with PayPal?  You should make that clear somewhere that it does that.  Some people will possibly only make one purchase and registering them with paypal may not be something they want.  Should be some way to make it optional registration with paypal.  Something like "Automatically register with PayPal?" and a checkbox checked by default.  That way, if they DONT want to register with paypal, they can opt out.

Cheers
Jeff
=================================================
Scionergy.com - www.Scionergy.com
Scion Owners Club of Ottawa - www.ScionOwnersClubOttawa.ca
Capital Door Service - www.CapitalDoorService.com - VM2.0.20b, Joomla 2.5.11 PHP5.2.11 powered site