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Yes, it is illegal to do this. Years ago - there was a letter to the financial guy in the Houston Chronicle (its in there every Monday in the financial section). Anyway - it is clearly illegal, and if you wanted to, you could report them to the attorney general's office.

I understand that gunshops operate on a small profit margin - especially at gun shows. But it is illegal.

I had an appliance store try to pull that on me 2 years ago, though - I paid extra for some upgrades for my new house, and I had to pick the items at a specific location the builder had an arrangement with. But when the store pulled that, I DID threaten to call the AG's office. They eventually backed down.

As others pointed out - a cash discount is the way to legally get around this.