Unexpected Charge

Self admittedly I have not done much in VA since we arrived. We did go into lockdown shortly after we arrived and to be honest it felt good to isolate and just relax at home. We arrived in Virginia in October of 2019. We as well as, I assume, every other new homeowner focused on getting the house up to our standards. We were not working yet so we had all the time we wanted to clean, organize, unpack and decorate. 

The kitchen floor took 40 hours with 2 people, using backbreaking elbow grease and countless products to get the linoleum floor clean. The bathrooms took just as long as we found out the grout was white and not black. November came and the house was cleaned and mostly decorated. December brought the cold, flu, or COVID-19 to Mike and I and we were down and out for a week. Remember that COVID-19 was not announced in the US until much later. We were hearing about it from our friends in China, so we ensured we had plenty of paper products, nonperishable foods and even bought a freezer for meats and veggies. We settled in for the long haul.

I digress, sorry, not the point of this post. 

I did not go out socially until recently. I can count on 1 hand how many times I went to a restaurant in the last 3 years. I worked, I came home, I repeated those 2 activities as most people did for years. When I did order out food, once a month, it was to get Chinese food which we have not done in months.

So, Mary invited us out last night to celebrate the sale of the house and to catch up. We had a few drinks and some appetizers and then received the bill. Mike looked the bill over and it was all correct. He provided his credit card, and the waitress returned it for his signature. When he went to add the tip and sign the bill it was not for the original amount of the check. It was higher than the bill. He checked to see if gratuity had been applied already but it had not.

The bottom of the merchant copy had a message that explained the difference. It states that it is a NCA. Have you heard about this? Have you seen this on your bill? You will not have seen it if you are from Maine, Massachusetts, Connecticut, Oklahoma or Colorado (before June 2002) because it is prohibited or limited to pass along surcharges in those states.1

“A 3% Non Cash Adjustment (NCA) will be added to all sales at this location. Discounts will be applied for Cash Payments.”2 This was not posted in the restaurant or on the original bill, if it was in the menu, it was not obvious, but it was on the receipt you sign after you pay.

Basically, they are passing along the processing fee they are charged by the credit card companies to you. Great for their business but not for customers. This also means if you do not pay your credit card bill in full each month you are paying late fees on that money.

As of Jan 2013, merchants can pass along their processing fees to their customers. This option of a surcharge has been around for a decade, and this is the first I have heard of it at a restaurant. I have come across it before I have negotiated service but never after. Gas stations would advertise the cash price vs credit card price so you could decide before you purchased. When I pay my utility bill online it clearly states there is an additional charge if using a credit card. A pizza place asked if I wanted to receive a cash discount when I picked up my order, of course I did. I saved 3% on my dinner! The same amount the business did not have to pay to a credit card processing fee.

Do merchants want us to use cash or credit cards? According to SpendMeNot.com 19% of transactions are paid in cash and 80% of those are under $25.00.3 If they are going to charge me to use a credit card then I am going to pay in cash.

I honestly do not mind that the merchant wants to pass along the surcharge to their customer what I do mind it is not being given the chance to make that decision before I purchase.

So, merchants be honest and up front with notifying your customers about a 3% or 4% (depending on state) surcharge for credit cards. It is required that you post the disclosure where the customer can see it at the entrance and at the terminal. Also, please post if there is a cash discount, minimum credit card spending amount, alternate payment fees or convenience fees.

Consumers should also know that if the merchant passes the processing fee on to you it is for credit cards only not debit cards. Save yourself some money and use cash, debit cards or pay attention to surcharges before you accept service. 

1 Passing On Credit Card Fees To Customers Guide (paymentdepot.com)

2 This is from the bottom of our receipt. I am choosing not to include the restaurant name.

3 21+ Cash vs Credit Card Spending Statistics to Know in 2021 (spendmenot.com)