Jormungandrs-bite t1_j2buzr5 wrote
Reply to comment by Randomperson1362 in ELI5: Why is it that, at some gas stations, it’s cheaper to pay with cash instead a credit card? by tgjj530
You may or may not know,.
But in the US. It's illegal to charge more for credit cards. But it's not illegal to give a discount on cash.
Manyelynn13 t1_j2cl1ps wrote
It's not illegal in the US to charge a credit card surcharge in all but five states.
EightOhms t1_j2c78ar wrote
Discounting cash sales is literally charging more for credit card sales.
So no it's not actually illegal because gas stations do it all the time.
The truth is this isn't a legal question but rather has to do with the service agreements the gas station signs with the credit card processor. For most stores, the CC processor forces stores to charge the same for cash versus credit cards. However they make exceptions for super low margin businesses like gas stations who literally cannot afford to pay the transaction fees and still make money on gasoline.
Not-your-lawyer- t1_j2cdbjc wrote
...not the point.
I mean, they're at least partly wrong. Only a few states in the US—five, I think?—ban passing on processing fees to the customer. But what's banned is not having different prices, it's charging a fee on top of the listed price.
It's basically a truth in advertising rule, though it's weird that we made it for credit cards and not for sales tax. Anyway, the idea is that credit card surcharges feel like a penalty and cash discounts feel like a reward, even if there's not practical difference between the two at checkout.
Legal-Mammoth-8601 t1_j2fnfcx wrote
Is it literally "Illegal" or just against the terms of the agreement with the credit card processor?
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