it's illegal to charge more for using credit cards at gas stations

[red 928]

We see it everywhere:
gas stations list a cash price and another
higher price for credit card purchases.
But in ten states, that is illegal.
They can charge more for using a debit card,
but not for using a credit card.
But they do it anyway
That is why arco charges 35 cents for using a
debit card but doesn't accept credit cards in most cases.
They are one of the very few retailers
that isn't breaking the law in these states.

So along comes judges from ... you guessed it,
the 9th circuit who says the law is unconstitutional
because it violates the merchant's 1st amendment
rights of free speech.
Yep, they said that making it illegal to charge
more for using a credit card violates their free speech.
Bizarro world, wonder who paid off those judges?

This will soon spread across the country.
But if enough people make enough noise and
bring it out into the open, the judges, law makers
and law enforcement will no longer be able to turn
a blind eye to this illegal practice.

Then we can go after the BS about them using 9/10s
added onto the advertised price of a gallon
but that's another thread


Ten states prohibit credit card surcharges and convenience fees: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas. It is illegal for merchants to add any surcharges to credit card transactions or charge convenience fees to nontraditional payment methods in these states.

Extra charges for using a credit card at the cash register took another step forward this week, as a California appeals court ruled against the state’s no-surcharge law.
The 9th Circuit Court of Appeals said in its Jan. 3 decision that the state’s ban on surcharges conflicts with merchants’ constitutional rights to recover the costs of card transactions.

“We hold that the statute as applied to these plaintiffs violates the First Amendment,” the opinion by the three-judge panel stated.

Credit card fees and free speech
What do fees have to do with free speech? Since discounts for using cash are allowed, and the resulting price is identical to a surcharge, banning surcharges is a restriction on how the price is communicated, the court ruled. The reasoning echoed a U.S. Supreme Court decision against New York’s no-surcharge law in 2017.

The California decision was limited to the small businesses who filed the lawsuit – including a restaurant, dry cleaner and web designer – but opened the door to broader surcharging by other merchants who use the same method. The companies may post a single price, then charge an extra fee when you pay with a credit card.

California had suspended enforcement of the no-surcharge law during the court challenge. Attorney General Xavier Becerra’s office did not respond to a question on whether the state will fight the decision or drop its defense of the law.

[lindbhr]

In Texas, gas retailers don't charge more for credit, they just give a discount for cash. At least I think this is how they manage to do it.

[stevej37]

^^^ I think that's the wording here for Michigan also.

[red 928]

same thing

[KFC911]

Originally Posted by lindbhr

In Texas, gas retailers don't charge more for credit, they just give a discount for cash. At least I think this is how they manage to do it.

Always been that way here too.

Debit cards cost the merchant pennies on a $100 gas purchase, a CC is gonna cost them approx 4% ... cash cost them nothing.

Nothing is free... I refuse to feed the pure overhead costs that merchants must pay the CC industry for their "convenience"....

But that's just me

[masraum]

Originally Posted by lindbhr

In Texas, gas retailers don't charge more for credit, they just give a discount for cash. At least I think this is how they manage to do it.

Specs (big liquor store in TX) also gives a discount if you use anything other than a credit card. It's the only reason that I still have a debit card.

[rusnak]

Arco is actually all over the place on card usage.

I was the only dealer who negotiated credit card pay at the pump in my area. I told them that I'd make my new store a 7-eleven if they didn't authorize me. Then Arco brand was sold off, and the new buyer agreed to the pre-exisiting contract. That led to my entire trade area of Central Calfornia being one of two (Las Vegas is the other) that accepts credit card pay at the pump.

Now Heartland Bank ("Heartless Bank") will charge $.35 per transaction for PIN debit and fleet cards. Furthermore, some fleet card users will get the same price per gallon as cash customers.

Dealers are allowed to set their own credit price per gallon. I could see if it was a violation of 1rst Amendment rights if the rate was dictated to the dealer, but it is not. Only the merchant services cost, which at the current street price of $6.11 per gallon for 87 octane, works out to less than $.05 per gallon. I charge $.08 per gallon for credit and subsidize that a bit by charging $.08 per gallon for cash and PIN debit. Believe it or not, it costs a lot to deposit cash. The bank charges around 1% to deposit cash at the counter. An armored car costs even more than that.

[smadsen]

Everybody wants their 3% cashback. Where do you think it comes from? Hint: Not Chevron or Exxon.

[GH85Carrera]

It is funny that Oklahoma is on the list. When I renew our business license with the OK Secretary of State, they charge me a $25 for the license, and a one dollar convenience fee. When I renew my car’s tag, I write a check to avoid the convenience fee charged by the state.

[wilnj]

I've started to see the same thing here for restaurants. This is on top of the customary minimum charge for credit card use.

[Nickshu]

They say the same here in Colorado. It's not a surcharge for a credit card, it's a discount for cash. I would imagine if that was legally challenged it would not hold up but who is going to take on that fight?

[Starless]

I live in Connecticut where it's illegal to charge a fee for using a CC. While going through our credit card statement I noticed that a local mom and son shop that my wife likes to shop at charges her a fee when using her CC. They even have it on the receipt as "fee". I asked her to ask them what the fee is and they told her they charge a fee if you use a card. I told her to tell them that it's illegal, but she likes going there and doesn't want to start anything.

[KFC911]

My county's tax dept will add 4% if you want to pay with a card... CC or debit. With a CC, they are covering their expense.... with a Debit it's literally hundreds of nothing but gouging.... as it cost them a few dimes to process.

[cabmandone]

Makes no sense to make charging a fee for using a credit card illegal. The business is charged around 3-4% so why shouldn’t they be allowed to be transparent and pass that fee along. Seems it makes for a more informed consumer.

[wilnj]

Originally Posted by cabmando

Makes no sense to make charging a fee for using a credit card illegal. The business is charged around 3-4% so why shouldn’t they be allowed to be transparent and pass that fee along. Seems it makes for a more informed consumer.

Because the CC companies have successfully lobbied to make it less transparent.


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[Cairo94507]

Yes, the 9th is a living joke across the Country. But hey, San Francisco just threw out that progressive POS DA Boudin. That is a huge step in the right direction. Let's home they make a good choice now.

[Cajundaddy]

CA charged a convenience fee for vehicle registration renewal, my local county charged a convenience fee for paying property taxes online. There are actual costs involved in CC processing and they are passing this on to the user. Right or wrong???

[Rick Lee]

If you're not getting a discount for paying cash, then you might as well use a CC and get the points. CC merchant fees are built into the price everyone pays if there is no discount for cash. I have both Sam's and Costco CCs because using them actually shaves $.04-05 off the per gallon price.

[2.7RS]

And why do you think so many merchants dont accept American Express???


Money doesnt flow from underground springs. Somebody has to pay

[cabmandone]

Originally Posted by wilnj

Because the CC companies have successfully lobbied to make it less transparent.


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Did you really think you were getting 2-3% cash back out of their pocket?