Bankruptcy

Credit Cards 101: Visa

By Chris Kramer

If you're a Visa cardholder, you probably received a packet of updated policies and terms of use for your card, related to the new credit card laws. However, even if you did read all the fine print, you still may be curious of the intricacies of how your Visa card works.

An interesting post from FiveCentNickel.com offers a look at Visa?s rules that merchants must follow if they accept Visa cards. Here?s a summary.

• What to take: Vendors can choose whether to accept credit and business cards, debit cards and gift cards, or both.
• No price limits: If a merchant accepts Visa cards, it is required to accept the cards for any transaction, regardless of its dollar amount. However, many merchants ignore this policy and set a minimum purchase amount to encourage spending. If you?re irritated by a specific vendor?s policy, consider speaking to a manager.
• Near equality: Items bought with Visa cards cannot be subjected to any special charge, but vendors can offer customers discounts for paying with cash (you may notice this especially at gas stations).
• Convenience fees: Online and over-the-phone transactions may be subject to extra charges, so long as they?re disclosed and not applied to any in-person transactions.
• No cash tax: Sellers cannot collect taxes from Visa transactions in cash.
• Tip not included: When you pay with a Visa card and intend to add a tip, vendors can only authorize your account for the amount of the service minus tip.
• No cash returns: If you buy something with a Visa card, sellers cannot give you cash should you return it.
• Time crunch: Merchants have to report Visa sales receipts within five days of purchase.
• Privacy limits: Receipts for Visa transactions should only show the final four digits of your card number and should not show your card?s expiration date. Further, sellers have to keep all account number information private.
• Policy disclosure: Vendors must explain (or make available) return and exchange policies before a customer makes a purchase.
• Signature required: Unsigned cards are considered invalid. If a cashier encounters one, she is supposed to make the customer sign the card and compare the signature to one on an ID card. Writing ?ask for ID card? in lieu of a signature is considered an invalid substitute.
• ID optional: Merchants may ask for a photo ID, but cannot require buyers to have one in order to complete a transaction.

It?s always a good idea to make sure you know the rules of your debit or credit card, so if you don?t have a Visa, check out your cardholder?s website!

Additional Resources

Just the Facts about Credit Cards (PDF)

A Consumer?s Guide to Credit Cards (PDF)

Full post as published by The Bankruptcy Blog on March 04, 2010 (boomark / email).