One of the most common payment methods in Mexico is credit and debit cards. According to Banxico, in 2024, there were 364.6 million transactions made through Point of Sale Terminals (POS).

The issue is that consumers often end up paying an extra fee just for using their card at some businesses.

Now, is this mandatory? What happens if a business tries to charge you a fee for paying with a card? Keep reading to find out what the law says and what your consumer rights are in this situation.

Charging a Fee for Paying with a Card in Mexico: Is It Legal?

Fee for Paying with a Credit Card: What Is It?

It is an extra charge applied by some businesses in Mexico when customers pay with credit or debit cards. This fee is usually a percentage of the total transaction, typically ranging between 3% and 5%, depending on the business.

Why Do Businesses Charge a Fee for Paying with a Card?

The main reason is the costs businesses have to cover for accepting this type of payment. Financial institutions and payment processors charge merchants a fee for each card transaction.

As a result, some businesses pass this cost onto consumers instead of absorbing it as part of their operational expenses.

In other words, businesses charge a fee for paying with a debit or credit card to cover the costs they incur. However, this is more common in small businesses or establishments with lower profit margins.

That said, this practice is not exclusive to small businesses since fees can vary depending on the type of card used.

For example, if it’s a credit card, the percentage tends to be higher. In some cases, the fee may be even higher when using an international credit card.

This is because transactions with international cards can involve additional costs for merchants.

Additionally, the fee also depends on the purchase amount and the payment service provider.

Is It Legal for Businesses to Charge a Fee for Paying with a Credit Card?

No. According to 2024 reforms to the Federal Consumer Protection Law (LFPC), this practice is illegal. The amendments made by the Chamber of Deputies prohibit merchants from applying surcharges, commissions or extra charges. Whether paying by debit or credit card or any other electronic means.

These types of fees are not the same as those charged by banks for certain services.

For example, fees for transferring money from one card to another are different, as these transactions involve specific administrative and financial costs.

Moreover, charging a fee for paying with a card in Mexico violates contracts between businesses and banks. These contracts clearly state that the cost of using POS terminals cannot be passed on to customers.

So, if a business charges you a fee for paying with a card, it is breaking the law, and you have the right to take action.

What Should You Do If a Business Tries to Charge You a Fee for Paying with a Card?

This is the million-dollar question: What happens if a business tries to charge you a fee for paying with a card?

The simplest option would be to shop somewhere else that doesn’t apply this charge.

However, many businesses in Mexico still charge a fee for paying with a debit or credit card, despite legal prohibitions.

The good news is that you can take action to enforce the law and ensure your rights are respected.

So, if a business tries to charge you, here’s what you can do:

Get Informed and Speak Up

Before paying, inform the store manager that the Federal Consumer Protection Law prohibits these fees.

Sometimes, employees are not aware of the law, and simply informing them may resolve the situation.

Report the Incident

If the business insists on charging the fee despite knowing the law, you can report it to the Federal Consumer Protection Agency (Profeco).

Here’s how you can report a business to Profeco for charging fees on card payments:

• Call: 55 5625 6700 or 800 468 8722

• Email: denunciasprofeco@profeco.gob.mx

• Visit one of their offices and file a formal complaint

Contact Condusef

You can also file a complaint with the National Commission for the Protection and Defense of Financial Services Users (Condusef).

In addition to providing more information about your rights, they can advise you on how to proceed with an unauthorized fee.

Notify the Bank That Issued the Business’s POS Terminal

This type of fee violates the contracts established between businesses and financial institutions for POS terminals.

So, if a business tries to charge you a fee for using your card, you can report it to the bank that provides their POS system.

The law is on your side, so you don’t have to accept a charge that is not mandatory.

Luckily, there are government agencies that can help you resolve this issue, so don’t hesitate to report it.

What Can Businesses Do?

There are strategies that retailers can implement without impacting the consumer experience.

If you're on the other side of the counter, you might try:

Agree on better terms with payment processors.

Processing fees can be negotiated with banks or payment providers. They often offer discounts if the merchant handles a high volume of transactions or signs long-term contracts. This reduces the cost per transaction.

However, it is important to consider the interest rates applicable to certain commercial agreements. This is especially true for deferred payments or interest-free month financing.

Encourage alternative payments

Instead of charging a fee, you could incentivize customers with discounts or exclusive benefits for using another method. For example, a bank transfer or cash payments.

This strategy not only minimizes the costs associated with card use, but can also strengthen customer relationships.

Implement loyalty programs

Creating a rewards system allows customers to accumulate points or receive benefits for recurring purchases. At the same time, it is an initiative capable of generating an incentive to increase sales,

And that's not the only benefit.

This type of program is designed to promote customer loyalty. But it can also help a business balance operating costs without the need for additional fees.

Use DolarApp for Transactions Without Hidden Fees

Worried about paying hidden fees on international transactions?

With DolarApp you have nothing to worry about, since we offer transparency in every transaction. With us there are no fees for opening, maintaining an account, buying or selling digital dollars.

In addition, when you get your international DolarCard, you will be able to pay in restaurants, online stores or apps. No matter if you do it inside or outside Mexico, there are no hidden fees.

The commissions associated with DolarApp are:

• 1% for withdrawals abroad on the total amount.

• 3 USDc for receiving payments from the United States.

Therefore, it is a good alternative to manage your money in USDc without worries or unexpected expenses.