Indeed, although giving a discount for paying with cash is often allowed. (Customers generally hate hidden fees more than they hate missing out on a discount.)

It's not a way to cheat the system though, since you still have to advertise the higher price. Even if you also say "5% discount for cash transactions".

it's fairly common around here at the 'independent' gas stations to advertise two prices; one for cash, and one slightly higher for credit cards.

It seems very fair to everyone I know who has ever had a merchant account; people who have not, on the other hand, sometimes think it's unfair.

If you know of any specifically, would you mind submitting them here? http://discountwithcash.com/app/node/add/business

Thanks!

Then how do universities and state licensing locations get to charge 5% fees on all credit transactions? Do they have separate deals?

it's funny, I mean, many of my suppliers of bandwidth and rackspace accept credit cards. No fee, usually.

I'm amused at this thread because I woke up this evening to a bill from a provider that I recently did an especially good job negotiating with, and the guy wants a 3% payment processor fee on top of the negotiated amount.

(I'm going to leave an envelope with a cheque at the co-lo for him; gotta go anyhow.)

They probably give you a 5% discount for NOT using your credit card.