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I believe either VISA or MasterCard - likely both - have rules against charging any additional fees when paying with their cards as a merchant, with the implici

I believe either VISA or MasterCard - likely both - have rules against charging any additional fees when paying with their cards as a merchant, with the implicit threat of them pulling their services and leaving you unable to process cards if you don't follow said rules. The typical workaround, which isn't against their rules, is to offer a discount for paying in cash - I can't recall the last gas station I saw that didn't do this (for gas at least), and a number of restaurants also offer cash discounts.

amenod 10y ago
The reason for offering a discount for paying in cash is probably that most clients would get angry if merchants tried to charge them more for using a credit card while they are always happy when they get a discount for paying in cash. I think the credit card processors are smart enough to realise that this is happening, so if they wanted & could do anything about it, they would probably write their terms differently (cca. "prices for payments in cash and with cards must be equal").
- oneeyedpigeon 10y ago
  Plenty of places demand a minimum payment for credit card transactions, with an additional fee in lieu of that.
- oli5679 10y ago
  In the UK, a majority of bars and corner shops will have a 50p charge for card use below a certain threshold or even refuse to take payment.
  - wrboyce 10y ago
    They do, but they shouldn't. Both MasterCard and VISA explicitly prohibit this practice in their terms.
  - jdavis703 10y ago
    In the past I've just offered hesitant merchants 50 cents extra. Probably only works when the merchant also owns the business though.
ensignavenger 10y ago
That used to be the case, but as stated by the above poster, it is no longer the case due to a lawsuit a few years ago.
rodgerd 10y ago
If they do, they aren't enforcing it at all in new Zealand, where a 2% surchage for credit cards is fast becoming the norm.
pbhjpbhj 10y ago
Cash can often be used to fiddle the accounts too ... which also leads to a cash preference for some.

amenod 10y ago

The reason for offering a discount for paying in cash is probably that most clients would get angry if merchants tried to charge them more for using a credit card while they are always happy when they get a discount for paying in cash. I think the credit card processors are smart enough to realise that this is happening, so if they wanted & could do anything about it, they would probably write their terms differently (cca. "prices for payments in cash and with cards must be equal").

oneeyedpigeon 10y ago
Plenty of places demand a minimum payment for credit card transactions, with an additional fee in lieu of that.
oli5679 10y ago
In the UK, a majority of bars and corner shops will have a 50p charge for card use below a certain threshold or even refuse to take payment.
- wrboyce 10y ago
  They do, but they shouldn't. Both MasterCard and VISA explicitly prohibit this practice in their terms.
- jdavis703 10y ago
  In the past I've just offered hesitant merchants 50 cents extra. Probably only works when the merchant also owns the business though.

ensignavenger 10y ago

That used to be the case, but as stated by the above poster, it is no longer the case due to a lawsuit a few years ago.

rodgerd 10y ago

If they do, they aren't enforcing it at all in new Zealand, where a 2% surchage for credit cards is fast becoming the norm.

pbhjpbhj 10y ago

Cash can often be used to fiddle the accounts too ... which also leads to a cash preference for some.