Calling our American Friends

Prices for goods and services are quoted net of tax, then a collection of taxes are added to it, the amount of tax varies from location to location.
however they should have told you the tax amount, re the credit card - did they display any plastic stickers indicating that they would accept credit card payment. If so complain to the credit card company.

I assume it is already paid for, and it will be hard to get any kind of a refund if that is so.
17% excess charges for using a credit card is insane. I would report them to the CC for that, though again I wouldn't expect a refund.
The old "bait and switch" sucks, doesn't it?
My recommendation would be to write the management with your complaints, see if they resolve anything. If not, rake them over the coals in TripAdvisor or the like. I understand the laws regarding slander are more agressive in the UK than they are here (very limited understanding of either set of laws, mind you!) but it is best to keep it to the facts.
Good luck, let us know how it works out for you.
David

I would gather all documentation from initial contact onward. Contact your credit card company and file a complaint. You should be able limit your liability to the original amount agreed upon plus taxes.

Worst case, the 17% will most probably be waived.

Regards
Jim

Hotels notoriously quote the nightly charge before taxes are added, though web sites like Hotel.com lately are more likely to make note of that. I almost always find that the charges for a hotel stay are as much as 20% higher than the initially quoted rate. Local municipalities tax visitors mercilessly with airport taxes, car rental taxes and the like. They figure that tourists are easy marks as they do not vote locally. Hertz, for one, lately has started giving me estimates for a rental including all taxes and fees, which winds up being much higher than their print ads' quoted daily/weekly rate.

Anyway, 17% in that context may not be so unheard of, though no less of a nasty surprise.

Norman

Thanks Guys

Infact we actually paid in cash in the end (point-being still higher than the original price they emailed a few months ago (although I notice on their website, hidden away, they say thay have the right to change rates 'without notice').

To reiterate, my main query is by giving us the 'choice' of paying by cash (cheaper) or credit card (17% more) are they doing this for tax evasion - illegal in the U.K., but in the U.S?..

Secondly what is the actual extra cost for them in taking credit cards - is it really 17%? - Naimdropper seems to think this unlikely.

I'd be grateful for further feedback from U.S. forum members...

I would speculate that cash is preferred for tax reasons. Tax evasion is illegal in the US; penalties are harsh and may include imprisonment.

There is probably a "merchant fee" of 2 or 3% charged to the vendor by the credit card company, This could be higher if they have a poor credit rating; 6% at the most I would guess. I would agree with Naimdropper that 17% is unrealistic.

It is my understanding that the credit card companies forbid the passing on of credit card fees as a surcharge over what you would pay in cash.

Hmmm, the plot thickens...any lawyers out there?

If you're truly pissed off, contact the Internal Revenue Service and tell them what happened. Informants get a percentage of the back taxes collected.

Of course, if the informant is an American, the first thing that happens is that the informant gets audited, but that's not your problem.

If you're sure the 17% was for credit card usage and not taxes, it's a major ripoff.

I'd support any one or more of the following actions:

1) objective review on selected review sites
2) complaint to New York City consumer affairs
3) complaint to New York City department of revenue (assuming there's a city income tax)
4) complaint to New York State department of revenue (there is a state income tax)
5) complaint to US Internal Revenue Service
6) the credit card company - they've almost definitely agreed to charge the same for cash and CC, so they've violated their agreement, and they're vulnerable to penalties.

Cash often goes directly into the pockets of owners of small businesses - highly illegal but hard to prove, and it's so prevalent that it's hard to prosecute - but these folks served you with such bad faith that they're just begging for retribution by the people they screw.

And email makes it so easy to complain effectively!

Regards.

Phil

Phil & JRH, great responses - many thanks for your help.