Businesses can charge extra for credit card payments

 

Source: Bob Egelko, San Francisco Chronicle

A California law prohibiting retailers from charging customers extra for using credit cards violates the businesses’ right to free speech, a federal appeals court ruled Wednesday.

The law, passed in 1985, doesn’t prohibit charging less to those who pay by cash or check, as long as the seller calls it a discount rather than a credit card surcharge. Such a description is preferred by credit card companies but opposed by retailers, who say the prospect of avoiding a surcharge is more attractive to customers than getting a discount, even if the price is the same.

Read Full Article: Businesses can charge extra for credit card payments

 

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