Anonymous
Are merchants legally allowed to impose extra 1-3% service charge/admin fees on consumers if the latter choose to pay using credit card?
Is this a legal act?
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Yes, if it is within the terms and contracts with the card network they are using.
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As long as the fees are displayed / communicated upfront, it is legal. Just like GST, they must communicate the charges before payment is made.
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Tl;dr, yes it's legal but you can do your part to not buy from merchants that impose additional credit card levies.
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Boon Ming
06 Feb 2020
Engineering at Nanyang Technological University
To add-on to the answer from Aaron on "who holds the real power". Another great example is Budget Ca...
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The card issuers frown against this practice but it's not illegal per se