Technically, a merchant is *not* allowed to impose a surcharge for payment with a credit card. You are also not allowed to offer a discount for cash or cheque. I know because my business accepts the three main credit cards, and have read the merchant agreements and also had discussions with account reps.

However......there is widespread non-compliance. Some businesses are very open about saying there is a credit card surcharge (non-chain IT/Audio-Video type stores, for example) and others will offer to knock a couple points off the price if you pay by chq or cash. I was very surprised to be told by my alma mater that there is 3% surcharge on credit card payments for a dinner I am organizing. They either have a different merchant agreement (which I find hard to believe) or they are gambling that VISA/MC don't want to lose their business.

With regard to car dealers, I think you should insist on paying by credit card if you want to, if they take cards for service, parts and the like. If they resist, ask to see the written policy that says you can't pay by credit card. I would venture that most dealers don't want to lose the sale.....

The smallest amount I have put on my Aeroplan Visa is 50 cents to pay at those Green P parking lot machines. The largest was about 20 grand for advertising. My A/R rep at a large national daily was telling me that he had a customer that paid his firm's monthly advertising bills on his Visa: $150K per month. I hope he is an SE or he will be buying toasters for everyone in Manitoba for Christmas.