Is it legal for liquor stores to charge different prices for cash versus credit card purchases?

Answer 1

Like Studly said it is against credit card policy.
It is also illegal in the following states:
California
Colorado
Connecticut
Florida
Kansas
Maine
Massachusetts
New York
Oklahoma
Texas.

If they charge you a extra for using a credit card file complaints with the credit card companies for the company charging the fee/surcharge and also request a charge back for the fee/surcharge.

If you live in one of those states file complaints with the proper authorities.

Answer 2

Being a business owner, I can tell you that most people do not understand a surcharge or minimum charge for using a credit/debit card. Let me try and explain a few things. It is perfectly legal to charge a minimum amount for credit/debit purchases. All the companies I have had merchant accounts with have all told me (speaking currently, not historically) it is ok to charge a minimum and there is nothing wrong with it. Charging a different PRICE for products? Thats something I have never encountered and am not sure what the legalities of that would be. In the past, a merchant could charge a different price for something cash and something credit. Later you had to charge the same amount for cash or credit.

Now, to explain why we do this. We are charged a fee per transaction, a percentage per transaction, a fee for each batch completed, and a monthly service fee. All of this is for YOUR convenience in using your credit/debit card. You see the Visa comercials on TV talking about life being easier when using a card in comparison to cash or check. They tell you this because they want you to use it, that's how they make thier money. Customers have requested businesses to use credit/debit cards to the point that almost all businesses accept them now.

A breakdown of what a business has to pay. You go into a store and buy something that totals $100, this would be what the retailer charges to your card. The average amount the retailer would pay for your transaction would be $2.50. That doesnt sound like alot. However, if that retailer did $10,000.00 in sales that day with credit cards they would have lost $250.00. Again, that doesnt sound like a lot when you think of the sales. However, again, you have to take into consideration what the retailers profit margin for that item is after purchase price of the item, their overhead, state/local/federal taxes, etc.... In a years time, the retailer has paid $91,250.00 for your convenience in using a credit/debit card.

So, when you see a retailer that has a minimum order requirement, think about his cost in that process and if he might be losing anything. Most retailers will do a $10 - $20 minimum, which is relatively low.

If you make a purchase and then decide to do a chargeback, please dont do that. If you don't agree with the minumum, just don't make the purchase. Every charge back just causes the cost for the retailer to increase. A chargeback was meant to be used when your card had a fraudulent charge on it. Not because you didn't agree with a retailer or was mad at them.

Also, checks are becoming the same way for retailers. Historically these have always costs the US retailer enormous revenues due to NSF and other charges. Many retailers now use services that help protect them from this, and they also charge percentages and fees for their use. This has made it cheaper for retailers to handle checks, but there is still a cost involved.

All retailers would rather deal in cash only, but the consumer wants more, so the retailer adapts to the changing market.

Yes, at one time it was retailers that were using credit cards to get your business from places that werent accepting them, but that time has almost vanished. And visa, mastercard, amex, discover (the main cards) are all making huge amounts of money on the fees they charge retailers AND the interest they charge you for that sale.

Answer 3

Credit card companies charge the merchant a small percentage to process the charge. The store owner is trying to recoup that charge by raising his prices....totally illegal if he only does this for credit card purchases. The rates are lower for the store owner when customers use a debit card. Merchants can, however, set a minimum for credit card purchases. The owner's merchant number should be on the receipt. This is his ID number. Get that number and call the credit card company. I'm sure there will be someone who can help you, or tell you who you can call.

Answer 4

This is a loop hole to get around the merchant card services agreement. Business can offer a cash discount without a breach of contract with the credit card company but can not add a surcharge or a minimum purchase for using a Master Card or Visa. However, many small business owners do this anyway.

Answer 5

Yes, gas stations also do this. It is because credit card issuers charge a fee to process the transaction. Some stores won't even let you use a credit card unless you buy at least $xx.xx worth of stuff.

Answer 6

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RE :Is it legal for liquor stores to charge different prices for cash versus credit card purchases?
Follow 11 answers

Answer 7

yes it is not uncommon for a store to pass on the cost of credit card purchases to cash customers!!!

Answer 8

having worked at bank of america, I can tell you the following.

Merchants can offer discounts for using cash, but can not impose a min. purchase requirement, i.e "credit card purcahse must be a min $10."

Answer 9

Legal, yes, but it is a violation of their agreement with the credit card companies.

Answer 10

it is in some states but it should be illegal everywhere ive had that happen to me many times it sucks