Posted by William Charles on October 21, 2018

Published on October 21st, 2018 | by William Charles


Recap: Visa Warning, BA Fuel Surcharges & More


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Can someone explain Visa’s cash discount rule?

When you go buy gas, if there is a signage that says pay with cash is $1.5 and pay with card is $1.6 per gallon, the $1.5 is the discount. The merchant has upped the price per gallon to compensate for what visa would’ve have taken. The reverse could also be true, the original price is $1.6 but they are offering $1.5 to those paying with cash to give a discount of $0.1 per gallon so that it isn’t dealt with the merchant fee.

Actually, in the article, it says that Visa considers this kind of pricing scheme okay in the gasoline context because it’s clearly displayed on the sign. I think they are talking about a place where they directly upcharge you a few percent to cover the swipe fees, not where there is a completely different price up front. Ex: bill comes to $10, goes up to $10.50 when you pay with credit.

This is my understanding..merchants can provide discount from the listed price for cash purchase but they cannot add surcharge to list price for using card.

ex. If the item list price is 10$ and at the counter, the business can charge only 10$ and not additional fee for using card (if thy charge 10.3$ with .3$ being processing fee it’s a violation).

However, the business can charge like 9.7$ for $10 list price at the counter (.3$ discount for cash payment).

I’ve never seen this in the US but it’s rampant abroad. Was told I had to pay a 10% fee to use visa…..


I know/knew a cafe that does/did this same shady practice in Michigan. Stopped going there, don’t know if they are still around.

Can businesses disallow the use of a credit card for payment if the total is under a certain amount? I have seen many times signs like “Credit cards not accepted for amounts under $10.

Weird I’ve only seen under $5 is the highest and under $3 is the lowest when places have a minimum.

No good reason? It makes them a lot more money. That’s then only reason a business needs.

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