[andymoe]

Typical credit card transactions fees range from 1.5-3.5 percent so the 2 percent is not a terrible deal and businesses usually just eat it in retail and work it into the prices.

Usually there is language in the contract with the processor agreement that prevents businesses from charging different prices for credit card vs non credit card buyers.

[lotsofpulp]

> Usually there is language in the contract with the processor agreement that prevents businesses from charging different prices for credit card vs non credit card buyers.

These stipulations were voided in the US as of 2010 due to the Dodd Frank legislation.

http://www.ftc.gov/business-guidance/resources/new-rules-ele...

> A PCN cannot stop you from offering your customers a discount or another incentive for using a certain method of payment, as long as you offer it to all your customers and disclose the offer clearly and conspicuously. For example, you can offer your customers a discount or a coupon if they pay with cash or a debit card rather than a credit card.

[amscanne]

I’ve been told that for brick and mortar retail, credit cards are sometimes more desirable because you might have more than their fees in shrinkage with cash. Even if it’s not more, it might make those fees easier to eat. I think it depends a lot on the specifics of the business.

[lotsofpulp]

Debit cards can do the same job for basically no fee.

Credit card users, however, are likelier to spend more money, and that is why many retailers are hesitant to charge credit card users more than debit card users.

Edit: note that Target does give a 5% discount on everything you buy if you pay with your bank account tied to their debit Red Card, so some retailers do seem to be changing ways.

[amscanne]

I’m not sure which debit cards you’re referring to (e.g. Interac vs VISA debit) but AFAIK they all have fees, with possibly different structures, e.g. a fixed charge + lower percentage.

[lotsofpulp]

Sorry, I meant that the fees are so low it is a negligible cost in most cases.

https://www.federalreserve.gov/paymentsystems/regii-average-...

Usually 50 to 60 cents at most, but 30 cents or less most of the time. The variable component is only 0.05% most of the time.

[Per_Bothner]

"Usually there is language in the contract with the processor agreement that prevents businesses from charging different prices for credit card vs non credit card buyers."

I don't believe that is the case. However, they usually prohibit a surcharge for using a credit card - but they don't (can't?) prohibit a discount for cash. To get around that you'll sometimes see "listed price reflects cash discount - add X% if using a credit card".

[lotsofpulp]

I think Supreme Court came down against those prohibitions in 2017, although I am not sure if that only pertains to state laws and not business agreements.

https://en.wikipedia.org/wiki/Expressions_Hair_Design_v._Sch...

Either way, due to wanting to avoid risking anti trust action and to stay out of the headlines, I think the payment card networks (PCN) are not going to want to try imposing any of those credit card surcharge terms.