DLCA Warns Against Illegal Credit Card Surcharges on Debit, Prepaid, and Gift Cards

The V.I. Department of Licensing and Consumer Affairs is warning businesses and service providers across the territory against imposing unlawful credit card surcharges on transactions made with debit cards, prepaid cards, or gift cards. According to the DLCA, such practices violate Title 12A V.I.C. §452, which makes it illegal for merchants to apply surcharges to these types of payment methods. The department said that under applicable card network rules—specifically those of Visa and Mastercard—surcharges may be applied only to credit card purchases and even then, only under strict disclosure requirements and with appropriate pricing structures in place. The DLCA is urging all businesses to familiarize themselves with network policies to ensure compliance. Both Visa and Mastercard prohibit surcharges on debit, prepaid, and gift card transactions. Detailed guidance can be found on their respective websites: Visa Policy Mastercard Policy Commissioner Nathalie Hodge ...