Mitchell Katz, spokesman for the Federal Trade Commission, said: "it's illegal for a merchant to charge more if a customer pays with a credit card, but OK if the merchant offers a discount for cash." The Dodd-Frank law prohibits a payment card network such as Visa from inhibiting the ability of anyone to provide a discount for payment by cash, checks, debit cards, or credit cards. However, some states prohibit charging an extra fee for using a credit card. That means a store can't list the price of something as $50, and charge $55 if payment is made with a credit card. Thats why you sell it for $55 and give a discount if paying with cash or check - which IS legal according to the FTC. As for why stores don't offer cash discounts, most stores have already built credit card and debit card fees into their prices, because more transactions are paid with plastic than cash or checks. If someone does pay in cash, that would mean many merchants would get a little bit of extra profit. As far as NY is concerned, well, it's NY. But to add to this me and my wife recently went to NY for vacation and in many of the shops we went into, the clerk asked how we were paying. I bought a $18 hat for $15 when I payed with cash so theres that.
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The way to get around Credit Card fees is to give a discount for cash or check payments. Say you sell something and you want to make at least $95 off of it. Sell it for $100 or pay by cash or check, pay $95. There is nothing wrong with doing that and it is legal in every state.
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