In some parts of the world businesses charge customers extra who pay by credit card. This became common in Australia when merchants were allowed to recoup the cost of credit card processing from consumers, but then new rules were required because businesses were imposing surcharges that were even greater than their credit card fees.
This always seemed like a strange practice to me. The cost of accepting credit cards is often lower than the cost of accepting other forms of payment. People bounce checks. Cash disappears, change gets miscounted, and employees pocket some for themselves. Warehousing cash that needs to be taken to the bank can drive up insurance costs. In contrast, credit card processing is electronic, it’s easy to reconcile, and the funds are put straight into your account.
However Marriott’s Westin Fort Lauderdale Beach Resort has been charging guests a 2% fee for paying their bills by credit card.
It’s unclear when this practice began. However if you look carefully enough it’s disclosed by Marriott when you book the hotel.
I suspect that, for a resort, this sort of surcharge is less about the cost of processing credit card transactions and more that everyone pays by credit card. Guests didn’t bring checks with them on their trip, and aren’t going to go through the hassle of finding an out of network ATM while on vacation.
Within 45 minutes of my flagging the issue for Marriott, I was told that the chain was in the process of ensuring that the franchisee that owns and manages the Westin Fort Lauderdale Resort ceases the practice.
Credit: Westin Fort Lauderdale Beach Resort
I have to imagine that even if something Marriott might have been alright with otherwise, their partners American Express, Visa, and Chase wouldn’t have been. At this hotel customers were being charged extra for trying to pay with a Marriott Visa from Chase or with a Marriott American Express card.
As a next step I’ve asked whether guests who were taken advantage of by the property will have these fees refund. Have you experienced a fee to pay by credit card at a major U.S. chain hotel?
Isn’t this expressly against the terms merchants accept when they process AmEx or Visa cards? I know AmEx was cracking down on merchants that charged customers a processing fee for paying with an AmEx but not a Visa.
What about the Old San Juan Sheraton that charges (or used to charge) separately for housekeeping? WTF is the the room rate for if not housekeeping.
Not if only Marriott would enforce policies covering breakfast benefits, upgrades, resort fee replacement benefit in the case of internet, etc. on rogue hotels within 45 minutes of Gary Leff contacting them.
Typo. Now if only ….
Interesting that Marriott is clamping down on this while effectively promoting resort fees.
More concerned about their partnerships than the folks that fundamentally drive their business, heads in beds.
It’s their choice to make, but it doesn’t seem like a winning long-term strategy. Eventually even big corporate accounts get taken over by the folks that used to be those “heads in beds” and they start factoring in “decreased productivity” for staying at a Marriott due to the inconsistencies, which sends them to take their business to other chains.
Marriott IS trying hard to lose my business….
Stayed at a JW Marriott last week that had a $45 resort fee. That was effectively a 20% surcharge on my daily rate. Where’s Marriott corporate when you really need them…
LOng time loyal SPG member and devastated by this latest BS. It’s the hospitality business and increasingly less and less hospitable. Business is bad enough pandemically speaking, and they should be focused on regaining that and leisure travelers. I bet if Arne were around he would put an end to this. ANd something about showing a Membership card…someone told me in a comment that new cards were never even part of the plan. They didn’t let us keep our old numbers which was bad enough, then no cards so we could even remember the new ones. Shameful all of it.
Buy a Marriott giftcard online for the value of your stay. pay with giftcard.
I was charged a credit card fee at a Marriott in Fiji. At the very least I think Marriott should wave it if using a Marriott credit card.
ABSOLUTELY!
The ghost of Arne Sorenson “resort fees are good for the customer” lives on!
Can’t comment about overseas but in the US isn’t this almost certainly against their card processing agreement?
Marriott should be cracking down on hotels doing what they want when they want.
@ Gary — A new reason to avoid Marriott. Can I borrow a piece of paper, my list is running over?
Bonvoy the hostility business
I have had a Marriott Visa credit card. For over 30 years. It was the only credit card so I used it for everything. It Marriot stars to charge my any fee to use their card, I will cut it in tiny pieces. They are many other credit cards out there that will appreciate my business
Federal law doesn’t prohibit surcharges. 10 states prohibit merchants from charging these surcharge fees. These states are California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma, and Texas.
westin IS Marriott now.
YES…from hospitality to hostility! Can we print bumper stickers?
“if a credit card is your preferred method of payment”
Actually, my preferred method is to pay cash, but I don’t have the cash today, so I’ll have to use a credit card which is not my preferred method. No fee then, right?
Marriott bonvoy loyalty program customers service has not been really providing any service. They are just lame and repeating their term without anybody willing to do anything. Their ambassador service is a disgrace, even worse the other lower elite member program
Pretty sure Chase and American Express will have a problem with this when people start canceling their credit cards…
Very few people pay with cash. This is just another way of sneaking excess charges thru to the customer. I will not stay at a property that does this and if done to me without my knowledge I will dispute the charge on my CC.
i always believed this was illegal — or at the very least, against credit card policies.
oh well, caveat emptor — and there are always alternative hotels!!
It’s not against the card holder agreement. A few years ago, the credit card companies entered into a settlement which banned that practice. However, as stated earlier, a number of states (including Florida) ban this practice and the settlement specifically permitted those bans to remain in place in those states.
So, I imagine that state law plus AMEX/Chase not liking it allowed for the swift reversal.
Starting paying the bill in nickels
In European Union countries credit card surcharges are no longer allowed since a couple of years. In some Asian countries the property owner may surreptiously charge you applying “dynamic currency conversion” by charging in your home country’s currency converting the local currency expense at a rate invariably less favorable than the rate your card issuer would otherwise apply.
Ha, thought it was just me angry at Marriott, been a loyal member for 20 years. After Covid, it seems they are trying to catch up. How bout resort fee at an actual resort. Here’s one I can’t understand, paying exorbitant amount for parking at YOUR hotel. I agree, they are getting close to me going back to Hilton
I would not knowingly book a hotel reservation at any property that charges such a fee,
Marriott over the last decade has gone from my go to brand, to the brand I now have very negative feelings about.
Fortunately, there are many other hotel companies to choose from. To do my part, my dislike for Marriott is clearly expressed to my business associates and they are starting to stay clear also.
hmm I think I had this in Delaware but just expensed since it was a business trip…having been a small business owner, it all adds but I’ve often found consumers prefer a one price solution rather than nickel and dime….resort fees I’m torn on…I know it’s pain if you’re not there to use the pool, golf course, gym, shooting range..whatever the resort offers and you’re there just to work/sleep/rinse and repeat. It sucks when you picked it due to location and your bombarded by the tourists having fun and you’re just wanting a quiet moment at the end of the day or lunch break.
Great way to turn away customers and anger those who have achieved elite status.
I will start to look elsewhere for lodging.
These charges are practically universal in Australia (I think) and New Zealand (I’m pretty sure), but are waived if payment is made by cash or by EftPos which I think is a direct bank transfer like a US debit card. Annoying, but …
Marriott has gotten so Greedy!!!!
@Gary – You published this around 8:00 am Central time today and as of 5:00 pm Central time the surcharge language is still on their website. And to think Florida is one of the states that prohibits this!
So this is unlawful in Florida. Everyone should contact the Florida Consumer Protection Division and file a complaint:
http://myfloridalegal.com/contact.nsf/contact?Open&Section=Citizen_Services
This is something Marriott needs governance over in their franchise agreements; it shouldn’t become a customer issue.
As noted by other Marriott Chase card holders, this is ludicrous. On one hand they encourage use to get as much as 5 Bonvoy points per dollar spent and then turn around and assess a fee? I’m not a litigious person but expect any reasonable judge would side with the consumer. My guess is that this new plan will be short lived due to the push back. I’ll start using up my points reconsider my loyalty.
If the state prohibits it then the customer needs to file a complaint with the Attorney General with that state’s Consumer Division. @Danny is correct in the states that prohibit it., BUT it limits the amount of the fee to the actual amount the company pays. Thus if the hotel is charged 1.5% then they can only charge 1.5% not 2%.
Marriott needs to hire a Senior Vice President of Laying Down the Law.
This executive’s mission would be to find properties that are violating a brand standard, schedule a meeting with the owner, and ask point blank, “What the phuck do you think you’re doing?”
Two words. No way. We’re supposed to bring hundreds, or thousands of dollars to pay for our room? And how do we do a pre-paid room, mail in a check? This is ridiculous. If they want 2% more they should be transparent and add it too the room rate.
Here is Calif it is illegal, as many have pointed out. One sneaky way businesses work around it is to charge customers a lower rate for cash purchases. So they aren’t adding a credit card surcharge, they’re extending a cash discount to the posted prices.
We just stayed at Westin Fort Lauderdale Resort late February and there was no credit card fee on bill.
Not unusual around the world. Was looking at an expedition with resort stay in Mexico, 4% for paying with CC which meant an additional $200 in charges.
They want wire transfers. Of course, getting your money BACK if you’ve used a WT instead of CC is a real fun process, relying on the honesty and quickness of the company.
Hotels are acting like the airlines nickeling and dimeing you to death. A charge here and a charge there.
It used to be forbidden by the card issuers for businesses to add credit card surcharges for purchases, but there was a huge lawsuit a few years ago against Visa/Mastercard and part of the settlement said that Visa/Mastercard could no longer forbid businesses from charging those surcharges, so unfortunately this is allowed now. And even though it’s illegal in Florida as noted above, good luck filing a complaint with the Florida AG, they don’t care about consumers at all, especially when you’re likely from out-of-state. I’ve filed a few consumer complaints before (as a FL resident) and they do absolutely nothing with them and won’t investigate anything.
I just earned Globalist status, but I will definitely switch back to Hilton over this. Absurd greed!
@Louis – Globalist is Hyatt, not Marriott though
Marriott is really pushing the envelope! I pay 1881 for my maintenance fee! It’s so discouraging. Then they won’t you to vote for one of there ceo, chairman, secretaries whatever? How do we know these people,,we don’t it’s just a false!
What kills me is having to pay for the sun protection with the papaya! Outrages they advertise the beautiful beaches but you have to pay extra. They are out of control! Wish u could sell but I’ll lose money!!
Oops! Meant to say Platinum. Thanks.
Not much different than gas stations charging one price for cash and another for card. Happens all around. In Florida, the highest price is ‘supposed’ to be advertised, but never is. It’s a bait and switch. Sad that a Westin is doing it. Marriott has sunk so low.
Surprised no one mentioned that most hotels, likely including this one, REQUIRE a credit (no debit) card on file for incidentals, etc. To do this and then charge a fee for paying via credit card is ludicrous.
In a place like the US, where most such transactions are settled by credit card, charging 2pc is ridiculous..it should be cost of doing business, especially in an industry such that this where margins are high and customer preference is paramount.
Having said that, I disagree with the author that credit card have lesser cost than other modes..similar to bounced checks ,CC charges can be disputed. Also, there are other electronic modes of payment..one need not go finding an ATM. For e.g., debit cards (usually the tx fee is lesser) or direct bank transfers. Here in India, every business..right from a 25sq.ft. shop to the largest establishments, have a QR code to which you can pay through a variety of mobile apps..
Availability of such cheaper digital alternatives now gives business owners the option to boldly charge the 2pc extra
Charging credit card fees for transactions is illegal in Florida. File a complaint with the consumer protection division of the Florida attorney general’s office.
I once left my wallet in a friend’s car and tried checking in without a credit card. I got enough cash for the room and incidentals deposit out of the bank. This hotel, a Courtyard in San Diego, refused to let me check in because I did not have a credit card. Given this experience, I can honestly say that requiring a fee to pay with a credit card is absurd.
Seems they lower it to 1%.
Anytime someone try to change me for using a credit card.. I just have to laugh, it is 2021.
My opinion is shared set the correct price and quite nickle and diming us.
I have a choice in hotels and that hotel will not be on my list..
Was just in this hotel–thanks for the tip. I complained and they refunded the charge. The people at the desk said my sending them this post caused “a lot of commotion” as they had never heard any discussion to reverse the policy. In fact, the sign is still up. On further inquiry I was told that about 1/2 the guests complain and are automatically refunded. The rest don’t and are charged. Something is very wrong here. If the franchise holder was told to stop they sure haven’t yet.
Oh, one other thing. This is a nice place and the staff is lovely. But the “business center” is using an older version of Windows 7, which itself is obsolete, so it doesn’t work very well. The charge to be online with this embarrassing junk is $7.95 for 15 minutes with $1/copy for each printout (boarding passes free). This sort of nickel and diming is just plain ugly. I’ve been in 2 star hotels with a free computer and printer by the desk. Somebody in the franchise isn’t looking at things the right way.
“The cost of accepting credit cards is often lower than the cost of accepting other forms of payment. People bounce checks. Cash disappears, change gets miscounted, and employees pocket some for themselves. Warehousing cash that needs to be taken to the bank can drive up insurance costs. In contrast, credit card processing is electronic, it’s easy to reconcile, and the funds are put straight into your account.”
Obviously the writer of this article has no clue about the numerous chargebacks businesses have to contend with…it takes us more time and costs us more money to lose on the chargebacks than it is to deal with a few bucks lost here or there…as a merchant, if you don’t do everything just right, you stand to lose a lot because a guest “realizes” they spent too much for their hotel stay and need to recoup their money by chargeback. When times are tough, this practice only increases and CC companies favor the consumer over the merchant each and every time. As the age old adage goes…cash is king…
Also from some of the comments here, people have no clue that when you have your card on file for incidentals, they are only authorizing your card…not actually charging it…if you don’t understand how credit cards work, how businesses use them and don’t understand the costs involved, you probably shouldn’t offer an opinion.
@CH
Your comment is totally laughable! The vast majority of chargebacks are not honored. I know because I had serious issues with MSC Cruises. They have denied everyone’s, not just mine. Put your business on here so we can avoid you!
I live in Mexico. In my city merchants, particularly “mom and pop” restaurants and bars charge 3% additional for a credit card. But, MX is a very cash oriented economy. The city I live in has lots of non MX tourist that use a credit card very frequently. One could look at it as getting a 3% discount if you pay with cash.
Scrutinize all the additional compulsory fees you pay for that wonderful customer experience in major hotel / resorts. It sorta makes that special / discounted daily room rate not such a bargain.
@JohnB
Actually, it’s your comment which is laughable…it is not your cruiseline which is deciding to deny your chargeback…it is the credit card processor that adjudicates the claim…and the burden of proof is always on the merchant. For the consumer, all they have to do is click a few buttons but the merchant must prepare an entire narrative to have a chance of winning….and if the merchant does not respond in a timely manner, you are screwed….case closed.
Your one experience does not make a trend…if you are in business and you accept credit cards, you would know what I am talking about. I don’t need to put my business on this site for the uneducated…those people who own and operate businesses know what I am saying.
We got charged 3% at the TownPlace Suites in Bridgewater, NJ.
Marriott takes out about the same to travel agents on their commission checks. I’m a busy corporate agent and I sell alot of Marriott’s. My checks are constantly being dinged for $2.00-$4.00 for ‘processing’ fee’s. Mind you, it is a direct deposit.