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legend wrote:I have always heard that they can't charge extra for credit card transactions, but they CAN give a "discount" for cash, however, they have to have it posted on a sign with both prices listed. They can't have one price listed, then when you go to pay they say "Oh, but there is a 3% charge for credit cards".

I'm not sure how true this is, but it's what I've always heard....

You're correct. Advertising one price and charging another is false advertising and the seller gets in BIG trouble for it.

I understand the point. Credit card companies do not make their money off of interest charges. They make it off of the 3% commission charge. That reduces revenue by 3% on credit card purchases, and you as a vendor could then end up with no net profit on the item if your price is only a 3% markup over unit cost (common, especially in big-box stores).

The general answer by most retailers is to mark up all prices an additional 3% over desired margin, and charge that price no matter the payment method. That way even if 100% of people charged it, you're making your desired margin. That's the answer the credit card companies like best; they do not want any practical difference to the consumer that could discourage CC use. However, you now know you're getting screwed if you operate in cash because you're subsidizing someone else's plastic. I'm not sure which is fairer all around, but someone's gotta pay the piper when you enlist their services.