Notice Regarding Surcharging for Large Ticket/Meetings Events
The purpose of this communication is to alert hotels of the prohibitions in Marriott’s recent agreements with the credit card companies on adding incremental surcharges for group events that are paid for by credit cards.
Credit Card Fee Reductions:
As you may be aware, as a result of Marriott’s recent negotiations with American Express, Visa and JPMorgan Chase, credit card acceptance fees have been significantly reduced for all Marriott Rewards and SPG hotels. The American Express global discount rate change is now 2.65%, reduced from 2.90%. For all charges made at hotels with the Marriott Chase Co-Brand Card, 50 basis points will be credited to hotels. For all other Chase cards used, 10 basis points will be credited to hotels.
Incentives for Meetings/Group Business (Large Ticket/High ROC) for US transactions:
In addition to the reduced card acceptance rates, both Visa and American Express have instituted lower rate incentives for large ticket transactions in the United States. Specifically, for Visa, acceptance rates are as low as 1.30% + $0.10, and for American Express the rate is reduced to 1.55% for large transactions. View the rate tables below for further details.
Visa:
Transaction Size |
Promotional Rate |
$5,000 – $9,999 |
1.50% + $0.10 |
$10,000 – $49,999 |
1.40% + $0.10 |
$50,000 + |
1.30% + $0.10 |
American Express:
Transaction Size |
Promotional Rate |
$20,000.00 – $89,999.99 |
2.05% |
$90,000.00 – $299,999.99 |
1.85% |
$300,000.00+ |
1.55% |
Prohibition on Surcharging:
It has come to our attention that certain hotels may be adding a surcharge on folios for group events that are paid for by credit cards. Please be aware that adding surcharges for large ticket transactions such as group events is prohibited under the American Express agreement and raises significant contractual and regulatory requirements under the Visa agreement and the associated card acceptance rules. In addition, in certain states, the practice of surcharging is unlawful.
It is critical to ensure that your hotel(s) are complying with the terms of Marriott’s credit card agreements. Should you have any questions concerning this matter, contact creditcard.operations@marriott.com.
