Tenn. AG warns of ‘deceptive’ credit card charges

KNOXVILLE, Tenn. (WVLT) – Tennessee Attorney General Herbert H. Slatery III is warning consumers about deceptive charges on their credit card bills, which might appear during the pandemic.

A release from the AG’s office warned customers that merchants might mislead customers by “falsely advertising a lower price than they actually charge or hiding any differences between credit card, debit card, and cash prices.”

Failing to clearly disclose the charges, including the additional fees, might violate state law.

“Consumers deserve to know exactly how much they are paying for a product or a service,” said General Slatery. “Any credit card surcharges need to be communicated clearly and in advance.”

To avoid surprise charges, the AG said:

• Check the receipt to make sure the price charged matches the advertised or posted price of an item (plus tax, if applicable).
• Look for the seller to display the full price (excluding tax) using each method of payment accepted. For example, the merchant should display the full price if the customer pays by credit card and separately the full price if the customer pays in cash.
• Be wary of a credit card surcharge that exceeds the actual incremental cost of the operating expense which is typically around 1%-1.5%.
• Look out for credit card surcharges characterized as “cash discounting.”

If you believe a seller is not charging customers accurately you can file a complaint here.

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