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CapitalOne MasterCard refused at a local grocery store, discrimination?

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  • Feb 28th, 2013 2:54 pm
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[OP]
Jr. Member
Nov 8, 2011
151 posts
16 upvotes
Montreal

CapitalOne MasterCard refused at a local grocery store, discrimination?

I've used a CapitalOne issued MasterCard at a neighborhood grocery store for the past year or so, but recently they started to refuse accepting any credit cards issued by CapitalOne. Their terminal carries the MasterCard logo but they said the reason for that is CapitalOne charges a higher fee than bank issued MasterCard.

I don't buy this argument. Plus I don't think it's legal to refuse certain credit cards based on the issuers. I live in Montreal,QC. Is there any government agency to which I can report this vendor? Please share your thoughts here.
44 replies
Deal Addict
Dec 26, 2009
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That is true based on a list that was posted here a while back (that Cap One cards tend to charge higher merchant fees).

With that said, I'm pretty sure it is against Mastercard's policy to discriminate based on issuer in Canada... if you let Mastercard know, they will see to it that the issue is corrected - though this may lead to unintended consequences (i.e. higher prices to make up for higher merchant fees or no MC accepted at all).
[OP]
Jr. Member
Nov 8, 2011
151 posts
16 upvotes
Montreal
RubberCheese wrote:
Feb 21st, 2013 7:31 pm
That is true based on a list that was posted here a while back (that Cap One cards tend to charge higher merchant fees).

With that said, I'm pretty sure it is against Mastercard's policy to discriminate based on issuer in Canada... if you let Mastercard know, they will see to it that the issue is corrected - though this may lead to unintended consequences (i.e. higher prices to make up for higher merchant fees or no MC accepted at all).
OIC. I actually thought MC acts as the intermediary and clearing house and hence would charge same fees for all issuers. No wonder this Capital One card is annual fee free and offers all the benefits other premium cards carry.
I called Cap1, they did offer me a 60 dollar credit to compensate for my trouble, which was nice. But it doesn't sound like they are actually going to take any actions against this particular vendor. Also MasterCard's website doesn't list a number I can call hence there's no way for me to report the vendor to them.
Deal Expert
Mar 25, 2005
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pierrerion wrote:
Feb 21st, 2013 7:16 pm
I've used a CapitalOne issued MasterCard at a neighborhood grocery store for the past year or so, but recently they started to refuse accepting any credit cards issued by CapitalOne. Their terminal carries the MasterCard logo but they said the reason for that is CapitalOne charges a higher fee than bank issued MasterCard.

I don't buy this argument. Plus I don't think it's legal to refuse certain credit cards based on the issuers. I live in Montreal,QC. Is there any government agency to which I can report this vendor? Please share your thoughts here.
What law would that be? It might (and likely does) violate a master card merchant agreement, but we live in a free economy. A merchant can refuse $5 notes if they wanted.
cjottawa wrote:
Feb 21st, 2013 7:33 pm
I'd start with a call to Capital One and immediately follow up with FCAC: http://www.fcac-acfc.gc.ca/eng/consumers/index-eng.asp
I doubt the FCAC has any jurisdiction in this. The transaction disputed is between the customer and merchant- not Capital One.
[OP]
Jr. Member
Nov 8, 2011
151 posts
16 upvotes
Montreal
Kasakato wrote:
Feb 21st, 2013 7:44 pm
What law would that be? It might (and likely does) violate a master card merchant agreement, but we live in a free economy. A merchant can refuse $5 notes if they wanted.


I doubt the FCAC has any jurisdiction in this. The transaction disputed is between the customer and merchant- not Capital One.
How do I get in touch with MasterCard?
Deal Expert
Mar 25, 2005
20372 posts
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pierrerion wrote:
Feb 21st, 2013 7:48 pm
How do I get in touch with MasterCard?
Flip your card around and call the 1800.
[OP]
Jr. Member
Nov 8, 2011
151 posts
16 upvotes
Montreal
Kasakato wrote:
Feb 21st, 2013 7:48 pm
Flip your card around and call the 1800.
That's the issuer, Capital One. And I already called them. Please read my previous reply.
Deal Expert
Mar 25, 2005
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pierrerion wrote:
Feb 21st, 2013 7:50 pm
That's the issuer, Capital One. And I already called them. Please read my previous reply.
Call and insist, they will do it. MBNA is more than happy to make a memo each time.
[OP]
Jr. Member
Nov 8, 2011
151 posts
16 upvotes
Montreal
Kasakato wrote:
Feb 21st, 2013 7:58 pm
Call and insist, they will do it. MBNA is more than happy to make a memo each time.
Haha, ok. I'm not good with insistence though.
Deal Expert
Mar 25, 2005
20372 posts
1595 upvotes
pierrerion wrote:
Feb 21st, 2013 8:07 pm
That MasterCard number redirected me back to CapitalOne. I guess I'll wait a few days now and if it happens again Ill demand Cap1 take some actions.
I meant the "Report a Problem Shopping" form on the left. All MC related issues are handled by the issuing bank, which is why you were referred to CapOne.
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Sep 13, 2003
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What's the big deal. Just shop somewhere else. So many small business get shafted from credit card fees. Another reason why no one takes Amex but Costco
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