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It's all about marketing and perception. See how credit card companies set rules regarding surcharges and cash. Before credit card companies tried to prevent a
by jtchang 7y ago
It's all about marketing and perception. See how credit card companies set rules regarding surcharges and cash. Before credit card companies tried to prevent a discount being offered if a customer paid cash as stipulation for taking credit cards. Durbin Act of 2010 changed that which made it legal in all 50 states.
- jedberg 7y ago> Durbin Act of 2010 changed that Ah! I was always saying I'm surprised by the brazenness of gas stations to offer cash discounts in violation of their credit processing agreements. Today I learned that as of 2010 the law protects them. Thanks!
- paulmd 7y agoThe gimmick has always been that you can't charge more for using a credit card, but you can offer a cash discount. So basically you just have to advertise the credit card price rather than it being a surprise fee added on at the last second. Which makes sense, most other countries actually roll sales tax and others into the advertised prices, and what you see is what you'll pay out the door.
- jedberg 7y agoRight, but before 2010 the credit processing agreements could (and always did) include language that you could not offer a different price to credit customers and cash customers, discount or not. Otherwise you would lose your ability to accept credit cards. Some places would still offer a cash discount and assume they wouldn't get caught, but most places didn't risk it.