I saw a story on the news about some gas stations giving a discount for cash sales. Could we implement that at a theatre? I don't think we are allowed to charge fees for a credit card transaction so could we legally offer a cash discount instead? Would customers go for this?

I saw a promo on CNN about it but missed the story.

As far as I know, your credit card merchant agreements do not allow this. Although I have not looked at mine in years.

I am in Idaho, and all the gas stations now advertise cash price on their signs. if you use CC, its .04 a gal higher.

If they can do it, don't see why we cant - offer a discount for cash

Seems wrong of the CC company to charge the vendor a transaction fee. They should be charging the customer or allow us to do as that gas station does. I'm pretty sure I have seen other theatres charge a fee for using a credit card but they may have worded it differently.

5.9.2 Charges to Cardholders

A Merchant must not directly or indirectly require any Cardholder to pay a surcharge or any part of any Merchant discount or any contemporaneous finance charge in connection with a Transaction. A Merchant may provide a discount to its customers for cash payments. A Merchant is permitted to charge a fee (such as a bona fide commission, postage, expedited service or convenience fees, and the like) if the fee is imposed on all like transactions regardless of the form of payment used, or as the Corporation has expressly permitted in writing.

Anyone have their agreement handy to verify this?

I see a lot of small stores say minimum $10 purchase for all Credit Card payments. Think that is allowed?

This could get interesting....

http://news.yahoo.com/s/ap/201...s_financial_overhaul

Regardless of your specific merchant bank, your processing agreements are governed by MasterCard and Visa International respectively.

Both these organizations emphatically prohibit requiring a minimum purchase or surcharge to use their cards. (If you notice, no store that has these "minimum purchase" signs ever has one professionally created by a printer).

Requiring a minimum purchase or surcharging for the same transaction which can be made by another payment means is a violation of your merchant agreement and when reported subjects your business to assessments in excess of $10,000 per violation.

Mastercard Merchant Violation Reporting System for Consumers

What you most often can do is offer a cash discount (this is what gas stations do). You can also charge a transaction charge/fee for certain types of purchases. Online ticketing can have a convenience fee. It isn't a credit card fee, rather a fee for online ticketing and unlike a walk-in customer payment by a card is the only manner in which this transaction can be completed.

If you do not display the Visa/MC logos and just accept online (pin-based) ATM transactions such as Star, Pulse, etc. you can charge a transaction fee. (Refer to AM/PM Arco gas stations in the western U.S. which do not accept credit cards, but DO accept bank ATM cards both at their pumps and in their C-stores.