Originally Posted by
JEFFJAGUAR
One of the most egregious parts of the Durbin legislation was a provision prohibiting credit card networks from prohibiting cash discounts in their merchant agreements (the same legislation also shortsightedly prohibited the networks from banning minimum purchases with a credit card). Several states retained the law prohibiting surcharges .credit card sales; I think there were 10 of them. Somehow, an activist judge in the federal district court for the southern district was somehow able to show this was a violation of freedom of speech and threw out the law as it pertained to New York but it such laws remain in effect in other states. Of course somehow gasoline stations are able to get around these laws by claiming what are clearly credit card surcharges are cash discounts
Merchants pay fees to process credit cards which are ultimately paid by consumers, so allowing folks to pay with cash and not still pay credit card fees is a good thing.