Facts About Credit Cards
– Unsigned cards are not valid and merchants can and will refuse them
As soon as your card comes in the mail, you should sign the back with your name. Writing “See I.D.” will not suffice. Merchants reserve the right to refuse your card if your signature is not present.
– The maximum liability for unauthorized use of a credit card is $50 according to Federal Law
– Merchants cannot require you to present ID, unless your card is unsigned
By contract, merchants cannot ask you for ID and you don’t have to present it to them.
– Merchants cannot require a minimum transaction amount
Those signs consumers are seeing more and more often setting a minimum purchase for credit cards is not allowed by the credit card issuer. Any business that does this can be reported to the credit card companies. Although it is not illegal by law, it breaches the credit card contract between the merchant and the credit card company
– Merchants cannot charge a surcharge for using a credit card; however, they can offer a “cash discount”
Merchants are not permittedto charge you a higher price if you pay with a credit card. One way in which they sidestep this is by giving “discounts” to customers who pay in cash.
– Merchants are not allowed to make you give up your right to a chargeback
– Merchants are not allowed to place a hold for the estimated tip of bill.
– If merchants suspect you of fraud, they are supposed to call with a “code 10”
If a merchant suspects that a consumer is using someone else’s credit card, they are supposed to delay the transaction and call the credit company with a code 10 to verify if the credit card is stolen, as well as other information.
– If merchants break these rules, you can report them to the credit card company
When merchants break rules according to their contracts, consumers have the right to report them. This is why it is important to get familiar with the different rules so a merchant does not take advantage of you.
– 71% of young adults do not pay off the full balance every month¹.
– Low & middle income families have an average of $8,650 in credit card debt².
²”The plastic safety net: The reality behind debt in America.”