Got A Question For An Attorney? Ask As Part Of Our ‘Ask An Attorney’ Series

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• So going off your credit card dispute piece. Seeing as online and phone are easier can you dispute over online first and then if denied submit the written request? Or do u give up your right to do so once you dispute online?

• Yesterday, as I was researching Visa's rules as they apply to merchant acceptance, I noticed that merchants are barred from imposing a minimum on debit card purchases, and the minimum on credit card purchases must be $10 or less. I honestly had no idea that these rules existed (and I'm sure some people did not know they changed based on the Dodd-Frank Act) - and though it isn't technically illegal for merchants to ignore them, they could get in trouble with Visa, MasterCard, etc. I would find it helpful to make a distinction between what might be illegal and what is simply breaking their obligations to the payment networks - e.g. surcharges are actually illegal in a certain number of states.

  I think this would be especially helpful if you did an even deeper dive into both the legal obligations and rules in other popular foreign countries as well - such as Europe and Asia. For example, again according to Visa's rules, while minimum limits on credit cards are allowed in the US & its territories, they are not allowed outside of the US. Additionally, travelers abroad have the right to be charged in the local currency instead of the merchant automatically converting it into the card's local currency. While some of Visa's rules might not be legally-binding, I'm sure others are in part based on laws that exist, which I think would give them more strength.

  Another interesting topic would be the distinction between a discount, a surcharge, a convenience fee, and a service fee (at least according to the way Visa seems to define them.) The way I understand it, payment processors are fine with discounts being offered for payment by cash - as long as the base price is the price that is charged if you use a credit card. Otherwise, it is considered a surcharge which is regulated in certain US states by law. A convenience fee would be one that is allowed by payment networks as long as it is a flat fee and not a percentage if the payment is made by a non-standard method that provides convenience (e.g. paying online for movie tickets vs. going to the movie theater to buy them there.) A service fee seems to be restricted to governmental and educational institutions that can charge a fee for accepting debit/credit purchases in certain countries.

  Maybe less relevant but was also surprised to learn that merchants, unless granted some type of exemption from Visa, cannot refuse to accept a Visa card without identification.

  Honestly I find this fascinating and not something many consumers know! I really wish they did because I have many friends who find it quite annoying to have minimum limits on debit cards or to worry about hidden fees with either credit or debit cards (which might not be allowed? I'm unclear as to how merchants are actually supposed to communicate and surcharges.) I like to feel like I'm in charge and not the merchants who are supposed to be serving ME, the customer - and knowing the rules and laws where applicable definitely would help many with that. You could also consider adding a section on how to report violations; for example, to the CFPB of the state if there is an anti-surcharge law or to Visa, Mastercard, etc. or Chase, Citi, BoA, etc. if there is a rule being broken. (Not sure about organizations like the BBB or anything else that might be pertinent like city-wide or state-wide agencies.)

• Suggestion for the Ask an Attorney series. Many premium cards offer trip cancel and delay insurance. The CNB Crystal infinite card for example will pay out a maximum of $500 for expenses if my flight is delayed by more than 6 hours. The caveat is that I have to charge the entire cost of the common carrier fare to the card to receive the benefit. How does this work if I pay for the fare using points and charge the taxes to the card. Do the taxes represent the entire common carrier fare or do the points represent part or whole payment for the fare and invalidate the coverage?

• How legally binding are the T&C (i.e. if a company puts "by signing up you agree to sell your soul" buried in the fine print)? Is it based on laws of the state where the company's HQ is or where consumers are using their services?

• I am glad that we have consumer protections provided to us by our cc companies. However, as a small business owner, chargebacks can be costly and regardless of proof provided a cc company always sides with their customer. What recourse do I have if I know a customer's payment to me was legit but they claimed it was fraudulent?

• Can I sue a competitor for tortious interference if they blatant lies to a prospective client?

• If you violate credit card T&C, but do not violate any specific law, can CC bank create costly legal issues for you beyond confiscating unused points? E.g., could you be taken to arbitration for financial recovery and have to pay damages/ part of arbitration filing costs?

  Maybe I just need to reread some agreements more closely...

• Alex should do a primer about how to go about filing a small claims complaint/dispute in our local courts.

  Thanks

• everyone should look at Alex's background and his practice areas. Doc does notes "New York Attorney specializing in consumer and international dispute resolution", so this is not some forum to ask all legal related questions that could possibly exist. therefore, you may not get an answer.

  • +1. We will be picking the most popular/relevant questions and obviously Alex will only answer things he is comfortable with. Some of these questions also seem better suited to an accountant rather than an attorney as well.

    • yea. people dont read. you should BOLD and highlight.

• Spouse and myself , our names are foreign to credit card/Bank CSRs and they can't tell over the phone whether it is male or female name, hence I have the luxury to deal with CSR on her behalf without having to go through authorization over phone etc. What repercussions can there be if I sort of impersonate? Spouse will never complain when asked. I can certainly understand if spouse has objection then this could be fraud.