Understanding the Issue
Have you ever wondered why some businesses add an extra charge to your bill when paying with a bank card? According to the Federal Procurator for Consumer Affairs (Profeco), this practice is not only unfair but also a violation of the Federal Law for Consumer Protection (LFPC).
Who is Profeco?
Profeco, or the Federal Procurator for Consumer Affairs, is a Mexican government agency responsible for protecting consumers’ rights and ensuring businesses adhere to fair trade practices. Their role is crucial in maintaining a balanced marketplace where consumers are not exploited.
The LFPC and Terminal Charges
Article 7 Bis of the LFPC mandates that businesses must clearly display the total amount to be paid for goods, products, or services. This total should include taxes, commissions, interests, insurance, and any other costs associated with the purchase or contract.
The Commission for the Protection and Defense of Financial Users (Condusef) echoes this stance, emphasizing that such practices not only condition the acceptance of card payments but also hinder financial inclusion. Consumers may mistakenly believe that paying with a card is more expensive than using cash, which contradicts the goal of promoting financial inclusion.
What to Do if a Business Attempts to Charge a Commission
- Cancel the purchase or service and visit another establishment that does not charge a commission.
- File a complaint with your bank’s card-issuing institution.
- If your complaint is ignored, seek advice from Condusef.
- You can also approach Profeco for assistance.
Penalties for Violating the LFPC
Article 127 of the LFPC outlines penalties for violating the aforementioned article, ranging from 733 pesos to 2,345,728.71 pesos.
Moreover, neither businesses nor service providers can impose additional charges for using a Point of Sale (POS) terminal. Contracts between banks and service providers, registered with Condusef, explicitly state that charging commissions or additional amounts to cardholders is grounds for termination.
Tipping and the LFPC
Profeco also clarifies that tipping is voluntary and should not be included in the final bill. Article 10 of the LFPC prohibits coercive and unfair commercial practices, making it clear that tips cannot be incorporated into the total amount.
Seeking Redress
If a business applies an extra charge for card payments or attempts to include a tip in the final bill, consumers can seek help from any of Mexico’s 38 Offices for Consumer Defense (Odeco) or file a complaint through Profeco’s various channels.
