A fellow parked in DC, paid at the P and D machine by a Credit Card issued by Bank of America. His parking Fee was $2. When he got his statement, they had charged him an additional $10 fee to process the $2 fee. When he complained, he was told that B of A was considering all charges made by a government agency a "cash advance" and was surcharging the $10. Read about it here.
I’m not sure if this is true or not, but it makes no sense. Unless there is something I don’t know, the government should look no differently to a credit card company than any other merchant, unless they have negotiated a lower discount rate — if that’s the case, its the problem of the bank, not the government. The bank wants all the money processed by the government agency, and in a large city, that’s a bunch. The city says — sure, we will accept your card, but since we are running millions through our city, we want a lower rate.
Anyone know anything about all this?
Hat Tip: Phil Oropesa over at Laz Parking.
UPDATE UPDATE UPDATE UPDATE UPDATE —
B of A gives us the straight information — it was a coding error and they do NOT repeat DO NOT consider parking fees to be cash advances. Read the entire story here.
Once again, PT Blog gets the facts first.