No, it is illegal to pass your CC processing expense to your customers in a direct fashion. You can snake your way around them, but you cannot tell customers "If you pay with a CC I will have to charge you more." One report to your processor and you will never be able to accept CCards again. You might be able to after a long legal battle, but you wont recoup the costs anytime soon. It's not worth it.

IF someone asks you "but if I pay you cash, can you do a bit better?" Then you can weasel your way around it.

 

Really. Asian places always always add a surcharge to CC/debit card purchases under $20. Can you guide me to a source so I can be better informed and stick it in their face next time they tell me to leave?

I was at a tea place once where I ordered a few drinks for around $12. When I was informed of the $20 min for cc transactions and noticed that I had no cash on me, I was to told to order more. I thought I'd get some crispy chicken, but that only amounted to $16. They had finished making the drinks, and I thought I could get some leeway as I had no other method of payment. I was given a stern no and he subsequently tossed the drinks in front of me.

As for Square, is this a merchant processor with no monthly fee? My agreement with my merchant processor + gateway charges me $28 a month if they don't make $28 from me in transaction fees that month. The swipe fees are fairly standard too. Sounds like I'm getting gyped.

 

[QUOTE=NFRs2000NYC,Sep 20 2010, 06:02 PM] This is illegal and they will pull your merchant license, an possibly bar you for life.

 

[QUOTE=NFRs2000NYC,Sep 21 2010, 01:35 AM] No, it is illegal to pass your CC processing expense to your customers in a direct fashion.

 

^ I also know of countless Chinese food restaurants that (when you pick up your food at the restaurant) offer a 15% discount for cash, 10% for debit, and 5% for CC.

It's printed right on their menu. It's an inversion of the increased charge for CC purchase, their prices are set but will come down if you avoid CC basically.

 

It is a violation of the Consumer Credit Protection Act, so yes it is illegal. It is very difficult to enforce though, since the vendor would have to provide you with their cc processing company for you to file a complaint with.

As far as cash discounts, this is a loophole. Here's what it states in my vendor agreement:

Merchant shall not require any cardholder to pay any part of any discount or charge imposed upon Merchant by this Agreement, whether through increase in price or otherwise. Merchant shall not require a customer presenting a Card for payment to pay for any charge not also required from a person paying cash. This term shall not, however, be construed as prohibiting discounts to customers for payment in cash.

 

Can you show me where in the Act it says it is illegal?

 

it is illegal to go faster than speed limit.
it is illegal to steal.
it is illegal to drink and drive.
it is not illegal to give cash discounts.

 

It is not illegal to travel faster than the speed limit. It's a suggested speed given the condition and surrounding environment on an average day with mild traffic. If you can prove that traveling 5mph above than the suggested speed was completely safe to both you and your surroundings, then you have full rights to travel 5mph more.

Yes, it is illegal to take other individual's properties without their consent.

It is not illegal to drink and drive. It is illegal to have a blood-alcohol level of .08 or above and operate a motor vehicle though (in the State of California). You can most definitely have 1-2 beers and operate a vehicle should your BAC be under the limit.

Cash discounts seems to be legal, according to what the patrons of this thread is suggesting. Further discussion will either confirm or deny said statement.

 

[QUOTE=AlX Boi,Sep 21 2010, 09:29 AM]It is not illegal to travel faster than the speed limit.