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> Merchants can pass the CC surcharge through Can they? I was under the impression (unverified) that they are under contract to provide the same prices for CC

> Merchants can pass the CC surcharge through Can they? I was under the impression (unverified) that they are under contract to provide the same prices for CC customers as they do for cash or debit card.

kelnos 4y ago
That used to be the case, but changed in 2013 when a lawsuit settlement was reached that more or less did away with these sorts of contract terms[0]. That's why (at least where I live) gas stations that charge different prices for CCs and cash/debit are everywhere, some restaurants will offer some percentage off if you pay in cash, and some online services, even, pass credit card fees on to customers. I believe there are a few states in the US left where merchants can still be required to charge the same, but in most places in the US that's not the case. [0] https://smartpay.gsa.gov/content/surcharges https://smartpay.gsa.gov/content/surcharges
- tveita 4y ago
  This seems like a good overview - sounds like there are still some big caveats: https://constantinecannon.com/antitrust-group/payments/developments-in-merchant-surcharging-hold-the-champagne/ https://constantinecannon.com/antitrust-group/payments/devel... The no-surcharge terms are plainly anticompetive and should have been reigned in a long time ago. But customers get really mad about extra fees and think it's the merchant that is ripping them off and not Visa/Mastercard.
iancarroll 4y ago
It’s complex, but I believe Visa and MC voluntarily gave up their anti-steering requirements, while Amex fought the legal challenge against them and won[0]. [0] https://en.m.wikipedia.org/wiki/Ohio_v._American_Express_Co%2E https://en.m.wikipedia.org/wiki/Ohio_v._American_Express_Co%...
WesternWind 4y ago
Gas stations in California certainly have different prices for CC vs cash, but they have to show both prices I believe. If you just charge extra for credit cards, that's a surcharge and falls under different rules. I think you can also advertise the credit card price and offer a cash discount. Debit cards still have transaction fees, though lower ones I believe, so they usually get the same price as credit cards, but none of the benefits like points.
pkaye 4y ago
I don't know if its state specific but there were some lawsuits in the past that removed this restriction and a cash discount is okay or a surcharge for credit card should be disclosed before you pay.

kelnos 4y ago

That used to be the case, but changed in 2013 when a lawsuit settlement was reached that more or less did away with these sorts of contract terms[0]. That's why (at least where I live) gas stations that charge different prices for CCs and cash/debit are everywhere, some restaurants will offer some percentage off if you pay in cash, and some online services, even, pass credit card fees on to customers. I believe there are a few states in the US left where merchants can still be required to charge the same, but in most places in the US that's not the case. [0] https://smartpay.gsa.gov/content/surcharges https://smartpay.gsa.gov/content/surcharges

tveita 4y ago
This seems like a good overview - sounds like there are still some big caveats: https://constantinecannon.com/antitrust-group/payments/developments-in-merchant-surcharging-hold-the-champagne/ https://constantinecannon.com/antitrust-group/payments/devel... The no-surcharge terms are plainly anticompetive and should have been reigned in a long time ago. But customers get really mad about extra fees and think it's the merchant that is ripping them off and not Visa/Mastercard.

iancarroll 4y ago

It’s complex, but I believe Visa and MC voluntarily gave up their anti-steering requirements, while Amex fought the legal challenge against them and won[0]. [0] https://en.m.wikipedia.org/wiki/Ohio_v._American_Express_Co%2E https://en.m.wikipedia.org/wiki/Ohio_v._American_Express_Co%...

WesternWind 4y ago

Gas stations in California certainly have different prices for CC vs cash, but they have to show both prices I believe. If you just charge extra for credit cards, that's a surcharge and falls under different rules. I think you can also advertise the credit card price and offer a cash discount. Debit cards still have transaction fees, though lower ones I believe, so they usually get the same price as credit cards, but none of the benefits like points.

pkaye 4y ago

I don't know if its state specific but there were some lawsuits in the past that removed this restriction and a cash discount is okay or a surcharge for credit card should be disclosed before you pay.