Originally Posted by
frappant
So they impose the 4% on the bill including sales tax AND they impose sales tax on the 4% fee itself?
it sounds like they add 4% and then the sales tax
Originally Posted by
cbn42
If the menu and the receipt both have this wording, then I think they are being incredibly clear and transparent about it. You are warned before you order, and again before paying, of exactly how much the surcharge is, how it is calculated, and how to avoid it. As far as surcharges go, this is a very good implementation.
there are 2 potential issues
1) visa and mc dont allow merchants to charge more than what they are paying, and since a restaurant usually dont pay the highest interchange fees, they maybe charging more than what they are paying. coincidentally 4% is the max that visa and mc would allow a merchant to charge
2) california law (im not that familar) seems to require merchant to include the fees into the published price, and not price + 4% as what the merchant has done here. instead they give a discount for people using cash.