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It is illegal to charge more to pay by credit card than by check (but can give a discount for cash/check payments)

On Behalf of | Aug 19, 2019 | Consumer

It pisses me off when companies want charge 3% or more to pay them by credit card.  If you don’t want to take credit cards fine, but don’t profit from it!  Elavon through Costco only charges 1.99% + 25 ¢ (for phone transactions) so don’t lie and try to make profit from a credit card transaction.

California and about 10 other states were trying to prohibit these surcharges https://oag.ca.gov/consumers/general/credit-card-surcharges

But now, starting with the US Supreme Court, surcharges will probably be allowed.  (See Expressions Hair Design /wp-content/uploads/sites/1404473/2019/08/15-1391_g31i.pdf

Technically, Civil Code Section 1748.1(a) prohibits retailers from imposing a surcharge on customers who pay with a credit card, but allows them to offer discounts for cash or check.

There is a work around for merchants, under the first amendment and how this surcharge is advertised.  See 9th Circuit Opinion:  /wp-content/uploads/sites/1404473/2019/08/15-15873.pdf

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