People are starting to pay their loan payments by credit card or debit card from another bank. This has increased our cost to the credit card merchant. The President and head cashier are wanting to know if we can charge a processing fee for accepting a credit card for loan payments. So far everything that i have found has said no its against the law but I need a more definate answer as well as where to find this information. Thanks in advance.

You should not be accepting credit cards for loan payments. MasterCard and Visa don't permit it.

what about as far as a debit card issued from another bank?

I thought that you could use credit cards to make loan payments but it would have to be posted as a cash advance? I used promotional convenience checks from my Visa credit card to pay another loan and I think that was permissible since the checks cleared and it was advertised that way.

Take a look at this other thread on the subject.