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Merchants In Costa Rica Cannot Offer Discounts For Cash

Will that be cash or plastic has been a favourite question by many retailers in Costa Rica, for the price if often adjusted if the purchase is made by cash.

Well, that practice may soon end, as the Ministerio de Economía, Industria y Comercio (MEIC), intends to enforce article 26 of the new “Reglamento de tarjetas de crédito y débito” approved on March 30, 2010.

The MEIC says the price of purchase should be the same if paid by cash or credit or debit card.

The regulation ends the practice of retailers offering customers a lower or “special” price to consumers who pay cash instead of a credit or debit card, thus avoiding the 2% to 10% charge by card processors to merchants.

Katia Chaves, head of the Departamento Técnico de la Comisión de Apoyo al Consumidor of the MEIC said merchants must clean their act and concern themselves with applying the regulations correclty.

The cost of violating (fine) the regulation is 40 base salaries.

In addition to the regulations of the merchants, the Reglamento also puts more burden on card issuers to better inform their customers, explaining fully the terms of the card and the statements being clear on all charges that appear.

In addition, credit card issuers cannot harass their customers on collections.