Dealerships now charge 3% for credit card transaction
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Junior Member
Joined: Jun 2017
Posts: 56
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From: Los Angeles, CA
2020 C43 AMG Sedan
Dealerships now charge 3% for credit card transaction
I had an email from my local Mercedes Benz dealer offer a free service clinic so I made the appointment. I just received an email confirmation from them, and the email says that if I decide to do any works with them, any credit card transaction will be assessed a 3% fee.
I have been using independent shop since last year because my car is out of warranty and paid with credit card with no surcharge. Have you seen this happening at Mercedes dealership recently? I am in California.
I have been using independent shop since last year because my car is out of warranty and paid with credit card with no surcharge. Have you seen this happening at Mercedes dealership recently? I am in California.
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Joined: Nov 2018
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From: San Francisco Bay Area
2019 C63CS
Yes, dealerships have increasingly started to pass on their costs of processing credit card transactions. They may have charged this before, but it was hidden in their margins. What's new in California with the junk fees law passed in 2024 is that they must disclose these fees upfront now. All businesses will have to disclose them. Having said that, it is technically illegal in California to charge credit card fees, but courts have previously ruled that it is hard to enforce. You can challenge them or just pay with a debit card if you don't want the hassle. My dealership is now charging 3% as well. It was disclosed in the appointment confirmation. I still had a prepaid service, so there was no charge and I didn't bring it up, but I will not pay this fee moving forward. I'll either challenge them or just pay with my debit card. I think it'll cost them customers eventually, so I'll see how it plays out.
Last edited by superswiss; Mar 9, 2026 at 04:39 PM.
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Yes, dealerships have increasingly started to pass on their costs of processing credit card transactions. They may have charged this before, but it was hidden in their margins. What's new in California with the junk fees law passed in 2024 is that they must disclose these fees upfront now. All businesses will have to disclose them. Having said that, it is technically illegal in California to charge credit card fees, but courts have previously ruled that it is hard to enforce. You can challenge them or just pay with a debit card if you don't want the hassle. My dealership is now charging 3% as well. It was disclosed in the appointment confirmation. I still had a prepaid service, so there was no charge and I didn't bring it up, but I will not pay this fee moving forward. I'll either challenge them or just pay with my debit card. I think it'll cost them customers eventually, so I'll see how it plays out.
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From: Colorado
G550
Getting hit with these swipe fees is an increasingly common practice, especially with merchants who don't have the advantage of customer impulse buying. Grocers and big retailers don't want to discourage impulse buying, so they absorb the swipe fees. Best you can do is to use cash back credit cards that pay a couple percent and try to neutralize the merchant fees. But all this is chump change compared to interest you pay on credit card balances, and even worse, on cash advances. If you carry balances on your credit cards, pay them off and shred your cards.
Are dealerships charging the 3% on service also, or just parts counter merch?
Are dealerships charging the 3% on service also, or just parts counter merch?
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Joined: Oct 2019
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From: Colorado
G550
Getting hit with these swipe fees is an increasingly common practice, especially with merchants who don't have the advantage of customer impulse buying. Grocers and big retailers don't want to discourage impulse buying, so they absorb the swipe fees. Best you can do is to use cash back credit cards that pay a couple percent and try to neutralize the merchant fees. But all this is chump change compared to interest you pay on credit card balances, and even worse, on cash advances. If you carry balances on your credit cards, pay them off and shred your cards.
Are dealerships charging the 3% on service also, or just parts counter merch?
Are dealerships charging the 3% on service also, or just parts counter merch?
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Thread Starter
Junior Member
Joined: Jun 2017
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From: Los Angeles, CA
2020 C43 AMG Sedan
I got the email reply from the Service Department so the credit card surcharge is for service. That is 1 more reason for me to NOT go to dealer for service.
I will go to this free service clinic tomorrow, when I am sure the service advisor will tell me that I need 10 things to get done for 10K. Then I can take that list and go to my local indy shop to get it done.
I will go to this free service clinic tomorrow, when I am sure the service advisor will tell me that I need 10 things to get done for 10K. Then I can take that list and go to my local indy shop to get it done.
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From: Buchanan, SK CANADA
2013 ML350 Bluetec
Its been a long time since I signed one but the CC merchant contract used to specifically forbid that practice. They stated in clear wording that CC charges were to be identical to cash charges. I know a lot of businesses played fast and loose with that requirement but it was in the contract at one time. For smaller businesses the swipe fee can be significant.
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My response to such things is to either go elsewhere or simply pay in cash. Paying in cash can be amusing as many businesses struggle to handle cash payments. The initial "Whaaaaa?" bewildered look can be quite entertaining. $;-))
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From: on my way
2012 CLS63
As others have mentioned, it's funny to see some folks squirm when using actual cash....also funny when young kids don't know how to make change because lots of them can't count and do simple math these days.
