Discover Where Surcharging Is Allowed: A Comprehensive Guide A lock icon ( If an ambulatory surgical center bills for physician services, payment for these services is not subject to the surcharge. HtVN#I}Y l;`#VBZY ^kabw\Uuf?; First, your letter notes that the convenience fee for the phone payment service is posted on the Hy Cite website. By clicking Accept All, you consent to the use of ALL the cookies. LEXIS 223167, *11 (N.D. Ga. Nov. 1, 2018); , Case No. Managed Care Organizations will be notified and mailed specifications of the reporting requirements before the requirements take effect. Both the government and credit card companies regulate the terms of how and when surcharges can be used. Late Payment Penalties and Default Rates. Any discrepancies noticed in the most current FEIN list should be brought to the immediate attention of the Health Safety Net Office for further investigation. "d!+B'?9$D5n! 14. Surcharge payments are due on or before the first business day of each month. If you need assistance, please contact the Division of Banks. What is the amount of surcharge owed by the individual and by the insurer? 23. 39. The processing fee to be charged will be based upon the costs associated with processing the customers payments made by credit card. A .mass.gov website belongs to an official government organization in Massachusetts. The HMO owes $5,000 x 1.22% (FY 2023 surcharge percent) = $ 61.00. But opting out of some of these cookies may affect your browsing experience. 26. How do I determine if my company should register as an institutional payer? Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet. The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". %PDF-1.6 % The Division has long recognized the restrictive nature of the language set forth in M. G. L. c. 255D, 11, paragraph A. No. Instead, mail the payment directly to the HSN. In addition, this conclusion is also consistent with the Divisions longstanding position regarding the permissibility of third-party payment processing fees for debtors making payments to debt collectors via credit card under the Commonwealths Fair Debt Collection Practices Act, M. G. L. c. 93, 24 et seq. BUT BOB SAYS HE GOT NO WHERE WHEN HE QUESTIONED THE OWNER. Credit Card Surcharge Laws By State Explained | LawPay Why does the HSN provide Federal Employer Identification Numbers (FEINs) for Massachusetts acute hospitals and ASCs? The TPA only needs to register once, for itself, but the TPA should forward a list of all of its clients to the HSN so that the HSN may include them in its database as affiliates.. 0_e/] - THEY SAY STATE LAW PROHIBITS ADDING CHARGES TO PAY WITH A CREDIT CARD. In addition to the interest charges when you carry a balance on your credit card, the costs of credit include late fees and default rates. No. Section III. >> WERE TRYING TO FIGURE OUT WHAT THE BEST STRATEGY IS AND HOW YOU FIX THIS. hbbd``b`j@q '7b)7V``0 a As discussed in the Divisions 2017 Opinion 17-008, the United States Supreme Court considered the question of whether the pertinent restriction in this case, appearing in the law of the state of New York violated the First Amendment to the United States Constitution. You skipped the table of contents section. Make sure you are aware of which state the bank is in and that you understand the credit terms before you take on a new credit card. Payments to rehabilitation, psychiatric, substance abuse, and VA facilities are not subject to the surcharge. Thank you for your website feedback! 290, 293 (S.D. To entice you to get a card with them, or transfer existing balances, some lenders offer lower rates, known as "teasers," which are only effective for a limited time. 19. What payments to hospitals are subject to the surcharge? ONE ISSUE COMPLICATING THIS IS WHAT HAPPENED TO NEW YORKS LAW BANNING CREDIT CARD SURCHARGES, BECAUSE THERE, FEDERAL COURTS SIDED WITH BUSINESS OWNERS SAYING THE FEES ARE ACTUALLY PROTECTED UNDER FREE SPEECH BECAUSE BUSINESSES HAVE A RIGHT TO TELL CUSTOMERS WHAT THEYRE PAYI. Use this number if you are hearing impaired. A few states still prohibit or limit surcharges on credit cards, though, including Connecticut, Maine, Massachusetts and Oklahoma. Quincy, MA 02171. he convenience fee for the phone payment service is posted on the Hy Cite website. ,J,|[Y'oWicul#ZQEJ:8s$]welJ0:4U.M$?E%,-vlZtWi7/1-E8p,4&4^*. As a result of the settlement, the insurer pays the hospital an additional $14,500. If the information you need is not available on our Web site, please contact the Health Safety Net Surcharge Help Desk: 800-609-7232 (phone)Email:SurchargeHSNO@mass.gov. Unlike credit cards, you may not have the right to dispute problem purchases. In addition, you have noted that the customer will be informed in advance of what the processing fee will be if the customer elects to pay by credit card, and that the fee will not be charged if the customer chooses the cash or check payment option. Retailers can also require a minimum purchase amount when you use credit cards. Yes. If you would like to continue helping us improve Mass.gov, join our user panel to test new features for the site. Yes. Opinion 21-005: Convenience Fee | Mass.gov The surcharge only applies to payments to Massachusetts acute hospitals. A hospital charges $6,234 for services to a member of an HMO in FY 2023. ; Payments made on behalf of foreign embassy personnel who hold a Tax Exemption Card issued by the United States Department of State. Top-requested sites to log in to services provided by the state. IT SAYS NO SELLER IN ANY SALES TRANSACTION MAY IMPOSE A SURCHARGE ON A CARDHOLDER WHO ELECTS TO USE A CREDIT CARD. Registered HSN surcharge payers are forwarded an electronic copy of the updated provider list annually for reporting purposes. As stated in your correspondence, DCD will contract with the Processor in order to offer its customers the option of paying by credit card. This report must include the name of each insurance carrier on behalf of which the TPA paid. Section IV. An official website of the Commonwealth of Massachusetts, This page, Does a credit card make sense for me?, is, For more detailed information about consumer rights and credit, you can read, Call Attorney General's Consumer Advocacy & Response Division, Consumer Hotline at. (Example: If claims are paid in January, then the related surcharge is due by the following March 1st). More information on rules and requirements related to surcharging can be found at www.visa.com/merchantsurcharging. Ifthe hospital paid the insurer, the insurer would have a $4.27 ($350 x 1.22%) credit against the amount it owed to the Health Safety Net. endstream endobj startxref A .mass.gov website belongs to an official government organization in Massachusetts. Credit Card Surcharge: Where Are These Card Fees Legal? | Money Imposing a surcharge to use a credit card is supposed to be against the law, but plenty of businesses across the state charge customers those fees anyway. Credit card surcharges are Illegal in Massachusetts, but some To ensure that the payer's account is credited appropriately, FEINs and/or registration numbers must be noted on the check or stub. Use this button to show and access all levels. Share sensitive information only on official, secure websites. Massachusetts credit card laws offer consumers some of the toughest consumer privacy data and protection in the nation, including safeguards against aggressive harvesting of your personal information for intrusive marketing. ?x?wPo@VP^~W| ,#clUOw/4^geH9S#Aj6@3"2AI78IZ4 T9PM Advertisement Will an option to wire transfer payments be available to surcharge payers? What amount of surcharge does the HMO owe? This cookie is set by GDPR Cookie Consent plugin. This report includes total payment, exemptions, and net payments to hospitals and ambulatory surgical centers. Payments to rehabilitation, psychiatric, substance abuse, and VA facilities are not subject to the surcharge. The interest shall be calculated from the due date and an additional 1.5% penalty shall accrue for each month a payment remains delinquent. Section VII. >> I DIDNT THINK THAT THAT WAS, IT WAS THE RIGHT THING TO DO. See Division Opinion 11-017. To avoid backdating, you should pay your balance in full every month or find another credit card company which does not backdate interest. The Baker administration has made moves to weaken what experts say is one of the most fundamental consumer protections in Massachusetts law, which says a seller cannot impose a. That neither the merchant nor its employees have any relationship with the third-party servicer provider or any affiliate, subsidiary, or related party. Any questions/concerns about FEINs that should be or should not be included should be brought to the attention of the HSN Office for immediate investigation. This letter is in response to your correspondence on behalf of DCD Automotive Holdings, Inc. (DCD) dated October 25, 2019 and received by the Division of Banks (Division) on November 5, 2019. If you are unsure, contact your bank. We will use this information to improve this page. The insurer pays the hospital $20,000 - 4,400 = $15,600 in October 2022. The HSN will automatically register all institutional payers for 2023. These tips from the Attorney General's Office can help you protect yourself when using a credit card. PDF Your State-by-State Surcharging Guide - IntelliPay The portion forwarded is considered an indirect payment, and the surcharge applies only to that portion forwarded to the acute hospital or ASC. 40. Hy Cite is a licensed retail installment sales finance company pursuant to M. G. L. c. 255D, purchasing revolving retail installment sales agreements from a variety of independent distributors throughout the United States. Don't Give Your Zip Code and Other Massachusetts Credit Card Laws You A payer received a notice of liability from a hospital with instructions to pay the surcharge directly to them. Visa is making significant surcharging changes that will take effect on April 15th, 2023 including: Merchants will only be required to notify their acquirers, not Visa, 30 days in advance of commencing surcharging. More specifically, under M. G. L c. 140D, 28A, the Division has determined that a convenience fee for the use of a credit card is permissible when the following five criteria are satisfied: See Division Opinions 19-010, 13-014, 13-010, 08-041. Surcharge payers must report the total amount of surcharge owed for the month. An official website of the Commonwealth of Massachusetts, Payment Process for Institutional Surcharge Payers, The HSN will send a monthly notice to all registered institutional payers directing them to make a surcharge payment by the next payment date. >> HE SAYS, TAKE YOUR VEHICLE AND GET OUT OF HERE. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. BOSTON Imposing a surcharge to use a credit card is supposed to be against the law in Massachusetts, but plenty of businesses across the state charge customers those fees anyway thanks to. A hospital sends a bill for $20,000. Boston, MA 02108. Are payments made on behalf of members who purchased unsubsidized Qualified Health Plans through the Health Connector subject to the surcharge? Please remove any contact information or personal data from your feedback. Surcharging is when a merchant adds a fee to a customer's credit card transaction. Massachusetts joins other states that still have a credit card surcharge ban on the books, with a bill to repeal. What will happen if a payer does not pay the surcharge? In addition to the interest charges when you carry a balance on your credit card, the costs of credit include late fees and default rates. But, making minimum payments benefits the lender only, because the longer it takes you to pay off your balance, the more money the lender makes in finance charges. Expressions Hair Design v. Schneiderman, 877 F. 3d 99 (2nd Cir. Hy Cite does not charge a convenience fee for payments made online. Cal. LEXIS 49552 (C.D. The HSN will notify and mail specifications to the payers that fall in this category. These credit card surcharge provisions appear in the laws of several states. As discussed in the Divisions 2017 Opinion 17-008, the United States Supreme Court considered the question of whether the pertinent restriction in this case, appearing in the law of the state of New York violated the First Amendment to the United States Constitution. Massachusetts General Laws chapter 140D, section 28A (2) provides that " [n]o seller in any sales transaction may impose a surcharge on a cardholder who elects to use a credit card in lieu of payment by cash, check or similar means." You also have the option to opt-out of these cookies. A .mass.gov website belongs to an official government organization in Massachusetts. , 2018 U.S. Dist. The HSN sends a monthly notice to all registered payers directing them to make surcharge payments by the next payment date. NEWBURYPORT A new phrase has crept into the city's restaurant industry - "noncash adjustment" and it is presenting diners with a choice to use cash or pay an extra fee to use a credit card.. Hy Cite is a licensed retail installment sales finance company pursuant to M. G. L. c. 255D, purchasing revolving retail installment sales agreements from a variety of independent distributors throughout the United States. There is a bar code on the original notice that identifies a payer and is not readable on a photocopied notice. ) or https:// means youve safely connected to the official website. If you would like to continue helping us improve Mass.gov, join our user panel to test new features for the site. Specifically, your letter indicates that manual processing of such payments on an expedited basis requires utilizing extra Hy Cite employee time. Bank of America Wholesale Lockbox Please do not include personal or contact information. Except as described in 101 CMR 614.05(3)(a), all institutional surcharge payers must register with the Health Safety Net (HSN) by completing the surcharge registration form provided below and sending it to the HSN. Where should the W-9 -- Request for Taxpayer Identification Number and Certification -- be mailed if I need a completed one for my files? Hy Cite customers may make payments on these agreements by credit card or automatic bank transfer through Hy Cites online payment portal. We will use this information to improve this page. 5 states where it's illegal to charge credit card processing fees Are Credit Card Surcharges Legal? - Experian 1692f); Lee v. Main Accounts, Inc., 1997 U.S. App. The Division has long recognized the restrictive nature of the language set forth in M. G. L. c. 255D, 11, No fee, expense or other charge whatsoever shall be taken, received, reserved or contracted for, except as provided in this section and in sections sixteen to twenty-two, inclusive, and except for official fees, and for the items expressly provided for in the retail installment sale agreement as set forth in section nine. (Example: If claims are paid in January, then the related surcharge is due by the following March 1. send the payment stub and a check made payable to "Commonwealth of Massachusetts (or Commonwealth of MA) for the amount of the surcharge owed to: Registered HSN surcharge payers are forwarded an electronic copy of the updated provider list annually for reporting purposes. It does not store any personal data. This website uses cookies to improve your experience while you navigate through the website. It is the responsibility of the surcharge payer to calculate the amount of surcharge owed. Please do not include personal or contact information. Surcharging: A State-by-State Guide - Paystand These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. To avoid automatic funds withdrawal, pay your bill on time, get a credit card from a different lender, or contact your bank and ask about un-linking the accounts. the processing fee that the consumer pays is simply a pass-through fee from the third-party service provider. Yes. The rule change permitting such surcharging went into effect on January 27, 2013. Surcharges and How They Work | Qualpay Merchant Knowledge Base As mentioned earlier, merchants cannot make a profit on surcharging and there is a maximum charge of 4 percent. Hy Cite also offers the option to make payments by telephone. An insurer pays $5,000 to an acute hospital on March 1, 2022, when the surcharge percentage in effect is 1.40%. 1692f, provides, in relevant part: The collection of any amount (including any interest, fee, charge, or expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt or permitted by law. Payers should not mail surcharge payments to hospitals. If you do not manage your account and pay it on time, many credit cards charge large late fees ($20, $25, $35) if they do not receive your payment by the due date . Analytical cookies are used to understand how visitors interact with the website. Please share your surcharge insights for others and ask any questions below. (b) What if the adjustment is negative and the hospital refunded $350 to the insurer on October 15, 2022? Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. All services billed by acute hospitals are acute hospital services and are subject to the surcharge. Lockbox 3441, MA5-527-02-07 However, legitimate surcharge payments must be forwarded to the HSN regardless of a company's registration status. Expressions Hair Design v. Schneiderman, 32 N.Y. 3d 382 (2018). The U.S. District Court for the District of Kansas approved a part of plaintiffs motion for summary judgment in an action concerning whether a state statute that bans credit card surcharges violates the First Amendment. ValuePenguin's verdict Using a credit card over debit cards and cash can often be advantageous. No, surcharge payers need to register with and make surcharge payments to the HSN. charge convenience fees for telephone payments under Massachusetts M. G. L. c. 255D and M. G. L. c. 140D, 28A. 100 Hancock Street, 6th floor Quincy, MA 02171 Payment Process for Institutional Surcharge Payers The HSN will send a monthly notice to all registered institutional payers directing them to make a surcharge payment by the next payment date. What is the amount of surcharge owed by the individual and by the insurer? 30. 8901 et seq. Please let us know how we can improve this page. cc}:x\R1OLm$$OqVdU&7Ir]}1{zgyN_!> Likewise, Oklahomas Attorney General has recently opined that the states credit card surcharge prohibition would violate the First Amendment if interpreted according to its plain meaning. There is one exception to this rule, where in Colorado the maximum surcharge amount is either 2 percent or the merchant discount fee (what the merchant actually pays for processing). You may be paying up to $50 a year or more as an annual fee on your credit card. What is the effective date of the new rate? Before taking a cash advance, even if your card advertises "no finance charges", find out if there is a transaction fee. LEXIS 223167, *11 (N.D. Ga. Nov. 1, 2018); Acosta v. Credit Bureau of Napa Cnty., Case No. A U.S. Supreme Court ruling in 2017 protected surcharges as a form of free speech from merchants. The institutional surcharge payer will then send the payment stub and a check made payable to the Commonwealth of Massachusetts for the amount of surcharge owed in the pre-addressed envelope. Is this correct? Credit Card Surcharges: When Merchants Charge You Extra - The Balance These rates may be five or ten points higher than your regular rate, which may result in interest rates of 25%, 28%, 30%, or even higher. This letter is in response to your June 18, 2021 correspondence to the Division of Banks (Division) on behalf of Hy Cite Enterprises, LLC (Hy Cite) requesting an opinion as to whether Hy Cite may properly charge convenience fees for telephone payments under Massachusetts M. G. L. c. 255D and M. G. L. c. 140D, 28A. 1997) (unpublished opinion) (five percent fee mentioned in letter was not a creditors fee, but a third-party charge triggered when the debtor chose the option of paying by credit card); Alexander v. Account Discovery Sys., LLC, 2018 U.S. Dist. N.Y. Gen. All institutional payers must make monthly surcharge payments to the Health Safety Net Office by following the instructions outlined in Section V (What is the process for paying the surcharge?). Massachusetts lawmakers move to fix credit card fee loophole Credit card surcharge and convenience fees: What you need to know In determining when a credit card processing fee is permissible, a critical aspect of the Divisions review is whether the merchant is utilizing a third party for processing the payment and that the amount of the processing fee (or convenience fee) charged to the consumer is equal to the actual cost that the third-party service provider charges the merchant for the processing of the credit card payment i.e. If the hospital paid the insurer, the insurer would have a $176.90 credit against the amount it owed to the Health Safety Net. Overnight Payment Tel # 888-267-2627. For example, with many cards, consumers will not enjoy any grace period on new purchases if a balance is carried over from month to month. >> HE SAID THATS JUST THE WAY IT IS. Please refer to. The licensee utilizes a third-party payment processor for the processing of the payment; The consumer has the choice as to whether to make the payment through the third-party service provider and must be able to avoid the convenience fee or processing fee by making the payment to the licensee by another method; Any additional costs, including the processing fee or convenience fee, that are associated with processing the payment by the third-party service provider are paid to or passed through to the third-party service provider; The third-party servicer provider is a completely independent company with no other relationship to the licensee; Neither the licensee nor any of its employees or affiliates may receive any direct or indirect compensation or consideration in any form from the third-party service provider or any other party; Neither the licensee nor its employees have any relationship with the third-party servicer provider or any affiliate, subsidiary, or related party; and. But, you should read your annual disclosure statement closely to see if the very benefits which enticed you to get the card aren't quietly discontinued over time. Top-requested sites to log in to services provided by the state. 10. E-Mail: SurchargeHSNO@mass.gov Thank you for your website feedback! Thank you for your website feedback! This formula determines the surcharge amount owed. BEN: IN THE CASE OF BOCH HONDA, THE MASSACHUSETTS DIVISION OF BANKS TOLD THEM THE FEE IS ALLOWED, AS LONG AS THEY DONT PROFIT FROM IT, AND INSTEAD HIRE AN OUTSIDE CREDIT CARD VENDOR TO PROCESS THE TRANSACTIONS AND COLLECT IT. Numerous court cases have resulted in positive results for plaintiffs. 45 0 obj <>stream An institutional payer only needs to register once, except that an institutional payer that is also a Managed Care Organization must register separately as a Managed CareOrganization. 8. 2 Morrissey Blvd Is the payment subject to the surcharge? This section provides answers to frequently asked questions about surcharge payments. New York allows credit card surcharges, but companies have to advertise the total price (including the surcharge) for their products or services . 20. PDF Merchant Surcharge Q&A - Visa ) or https:// means youve safely connected to the official website. Mass.gov is a registered service mark of the Commonwealth of Massachusetts. Make sure that you ask the credit card company for an explanation if you do not understand the terms. Some credit cards have strict regulations on the subject. Rates and fees may be particularly competitive when transferring balances. If you need assistance, please contact the Division of Banks. Boston, MA 02241-3441. For consumers making a payment by telephone, the licensee must ensure that the fee is disclosed verbally over the phone prior to the consumer being charged. As noted, the consumer will have the choice to pay by cash, check, or credit card. In Expressions, the Supreme Court held that the same prohibition language does, in fact, regulate speech because it regulates how sellers may communicate their prices. Section VI. Connecticut, Massachusetts, Maine, and Puerto Rico currently prohibit surcharging. Fact patterns which vary from that presented may result in a different position by the Division. Attn: Health Safety Net Surcharge LIKE A DINER ON THE SOUTH SHORE, OR AT BOCH HONDA IN NORWOOD. Annual fees are set by the card issuer and interest rates may vary by the prime lending rate. As new bills are introduced to allow for credit . endstream endobj 32 0 obj <>stream Please include the name of the contact person, address, phone number, email address, and fax number. Does a credit card make sense for me? | Mass.gov 34. Does a TPA need to register separately for each of its clients? Opinion 19-010 | Mass.gov Pursuant to a settlement of the U.S. merchant class litigation, Mastercard modified certain rules and business practices to permit U.S. merchants to apply an extra checkout fee, also known as a surcharge, to customers who pay with Mastercard-branded credit cards. There is an adjustment to the bill and the insurer pays an additional $350 to the hospital on October 15, 2022, when the surcharge percentage in effect is 1.22% (a) What amount of surcharge does the payer owe? However, thanks to a class action lawsuit in 2013, a large number of states began permitting the practice, with more and more states following suit over the course of the decade. A lock icon ( Share sensitive information only on official, secure websites. determine the amount of surcharge owed (the amount of the payments subject to surcharge made in the previous month, multiplied by the surcharge percentage in effect). These cookies ensure basic functionalities and security features of the website, anonymously. Colorado is also currently in this minority group, but . Likewise, customers may make payments on an agreement through the submission of a physical check, money order, or cashiers check to Hy Cite. 12-2019 (Dec. 17, 2019). The portion forwarded is considered an indirect payment, and the surcharge applies only to that portion forwarded to the acute hospital or ASC. While in a different context, federal courts have considered whether such a pass-through convenience fee is permissible under the Federal Fair Debt Collection Practices Act (FDCPA), which prohibits the collection of any amount (including any interest, fee, charge, or expense) unless such amount is expressly authorized by the agreement creating the debt or permitted by law. >> IT WAS ALARMING TO ME TO SEE THESE OPINIONS FROM THE DIVISION OF BANKS THAT REALLY SAID YEAH, WE HAVE THIS EXISTING STATUTE BUT IF YOU WANT TO GET AROUND IT, HERES WHAT YOU HAVE TO DO.