> I don't believe that a merchant is allowed to do this? Probably very dependent on your deal with credit card processors but my understanding is that the default contract between a merchant and a credit card processor stipulates that you are not allowed to offer discounts to not use credit cards differently.
I think this was in the past or no longer enforced. I lost count now of the stores that will charge you a 2-3% fee for paying with a card.
In the U.S. credit card surchages are no longer banned by the credit card processors due to a settlement between retailers and Visa/Mastercard in 2013: https://smartpay.gsa.gov/content/surcharges
I think some countries are starting to make it this illegal (I think Australia and some in the EU?). So maybe that's why credit card companies are turning a blind eye.
I think this was in the past or no longer enforced. I lost count now of the stores that will charge you a 2-3% fee for paying with a card.