Michigan Restaurants Might Illegally Charge for Credit Card Use

Going out to eat at a local Michigan restaurant? You may want to double check your bill before you pay as some customers are getting an unwelcome surprise. And some restaurants may be adding that surprise in illegally.

Credit Card Surcharges at Michigan Restaurants

Pay at more and more local businesses and you may notice a fee added on if you’re paying with a credit card. While this has been going on with local businesses in Michigan for some time now, there are rules set up to protect consumers from being unnecessarily charged for using a credit card. According to Michigan.Gov, restaurants may—but are not required to—charge for processing a credit card transaction. And there are clear guidelines that a restaurant must follow when adding surcharge fees:

Get our free mobile app

"Brick and mortar sellers who choose to impose the surcharge must post a notice at the store’s entrance advising that a surcharge applies on purchases made with identified credit cards. At the point of sale, the exact percentage must be disclosed. Sales receipts must itemize the exact amount of the surcharge."

 

The Pros and Cons of Adding Surcharge Fees at Michigan Restaurants

Restaurants may lose profits to credit card processing fees, but adding surcharge fess raises the cost for consumers. And those customers could go to nearby competitors who don’t charge such fees. From a practical perspective, restaurants need to consider how customers will respond to the implementation of surcharging and what impact it will have on their business. And they should inform customers prior to the transaction so the customer can choose alternative payment methods to avoid a surcharge.