It is one of those obscure things as I mentioned. I will post the actual statute when I find it. If memory serves it was part of a set of banking changes back in 1978, a forerunner of The Fair Credit Act. One of those things like the limit on how much loose change a merchant or debtor had to accept. $25.00 incase anyone wanted to know.
I work for a company that provides credit card services to restaurants and hotels. There may well be laws by state, but I don't believe there are any federal laws on the books about this.
Cash or Credit Card?
Posted 27 May 2003 - 02:43 PM
Posted 27 May 2003 - 02:44 PM
Ok, that makes sense, especially knowing how dictatorial V/MC is.
The real issue stems from the Visa/Mastercard association. They do not allow their merchants to discount for cash, charge a premium for cc's, or have a minimum charge for cc's. If you're reported to them, they will have your credit card processing account revoked.
Posted 27 May 2003 - 03:28 PM
check out newspaper sales ads from a lot of electronic stores in nyc.. at the very bottom, in the tiny little print after their id#, you'll find a notation that all prices reflect a 3% cash discount..
I don't get it. If it's true that cash discounts are legit, why isn't this more widespread? Why didn't all the establishments that were charging a surcharge on credit cards before the practice was outlawed, simply offer a cash discount instead? I'm not referring to bargaining with a merchant about paying for tires or whatever with cash and getting x amount off, but a written stated policy, like 5% off for cash. I have never seen this anywhere except gas stations, though not any more. Certainly not in restaurants. I must be missing something aside from a few brain cells.