The debate over surcharges on credit and debit card purchases has been simmering for years. Whether they should be allowed really depends on who you ask: the business owner trying to stay afloat or the consumer just trying to pay without extra fees.
Back in 2017, Maine found itself at the center of this debate when a legal dispute made its way to the Supreme Court. The result? Maine became one of the very few states in the country where businesses can't tack on a surcharge for credit card payments. But -- because there's always a but -- there's a glaring exception that has many small business owners here fuming.
According to News Center Maine, Curtis Picard, president and CEO of the Retail Association of Maine, basically explained that in Maine, state regulations permit a surcharge to be applied when paying with a credit or debit card at certain places. This means that when residents visit their town office to pay property taxes or register a vehicle, a surcharge may be added to their transaction. The same rule applies to colleges, where students charging tuition to a credit card.
So if you've scratched your head wondering why you get hit with a fee when registering your car, paying for a state service, or paying tuition, now you know. Hypocritical? Maybe.
For consumers, Maine's no-surcharge law is a win. Let's be honest -- most people don't carry cash anymore, and credit cards offer perks like cash back and travel rewards that make them hard to resist.
For small business owners, though, this law stings. With current profit margins being so thin, those 3% transaction fees (thanks, credit card companies) pile up fast, forcing businesses to rethink their pricing -- or eat the costs. Some businesses fight back with cash discounts, which you've probably seen at gas stations offering a few cents off per gallon for paying with cash or using special rewards programs.