Credit Card Surcharges at Flying J, Pilot Corporation

SEPTEMBER 2001 - OOIDA’s efforts to oppose surcharges on diesel fuel purchases using VISA and MasterCard credit cards ended in 2001 with an adverse decision by the Tennessee Supreme Court concluding that OOIDA was not a third party beneficiary entitled to enforce Flying J’s contract.

While both VISA and MasterCard forbid the imposition of surcharges, OOIDA’s litigation before the Supreme Court was whether cardholders could enforce that policy in court.

However, the Supreme Court’s failure to support cardholders does not mean there’s no remedy. For example, the stated policy of both VISA and MasterCard is to support cardholder complaints.

Such surcharges, while not illegal, are a breach of contract with the merchant bank. That’s because MasterCard and VISA contracts contain a “no-surcharge” provision. For this reason, OOIDA urges all drivers to complain directly to the credit card company to stop the practice.

OOIDA continues to receive member complaints about Flying J Inc and Pilot Corp for assessing the surcharge, typically 3 cents a gallon, on fuel purchases.

“Our goal is to assert the rights of owner-operators and other credit card holders to receive the kinds of service and treatment they have a right to expect when using these credit cards,” said OOIDA Jim Johnston. “This means not having to pay more to a merchant just because the payment was made using a credit card.

“The imposition of surcharges on credit card purchases lessens the value of the credit card itself and it is especially outrageous that these surcharges are imposed primarily on an owner-operator.