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Comment by dazbradbury | Hacker News Reader

Disclaimer: I've not read details on ALL the different payment platforms that are around, or the regulations when dealing in this market.

With that said, why don't the platforms make it easy for merchants to pass these saving back onto the consumer. You can pay by credit card, but that would cost you 4% more than [insert payments system].

In that way, I'm incentivised as a merchant (more sales/discount with no loss), and as a consumer (real discount).

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I believe that is against the terms of service for Visa and Mastercard. If you were to offer such a discount they would simply cut off your access to credit cards.

Edit: From the visa terms (http://www.fivecentnickel.com/2010/02/26/visa-credit-card-ac...)

Merchants must always treat Visa transactions like any other transaction (with a minor exception). They may not impost a surcharge for using a Visa card, but can offer a cash discount. This discount cannot be offered for use of a “comparable card” such as a different credit card.

There are indirect ways of rewarding someone for not using a credit card - like providing a coupon for their next purchase (I saw that at Ikea before). Although if these loopholes gain in popularity the credit card companies could always revise their terms.

Similar to how Canadian Tire gives 'Canadian Tire Money' when paying some way other than credit cards.

The bonus is that a fair number of 'mom and pop' shops will accept Canadian Tire money as cash...

I guess I had some idea such a clause existed, hence my up front disclaimer.

Basically, it's just straight-up anti-competitive behaviour though.

IIRC, you're specifically not allowed (under credit card TOS) to charge MORE for accepting a credit card, but you can offer a discount for another payment method. This is how, e.g., gas stations can charge one price for cash and another for credit.

The gas stations near me all list only the cash price, then when you pull in you'll see that "not using cash" costs 5-10c more per gallon. It's pure semantics, people are "charging more" for credit cards all the time.

I rarely carry much cash around anymore. I buy everything with a CC and pay it off in full every month. Never late.

Mentally, I'd rather pay more per gallon at a place where I can use my CC than go to a place with a dual fee structure.

I'm sure the logic doesn't make sense, but I feel like I'm getting ripped off at a place that does that when I use a CC to buy gas. As a result, I tend to avoid those places.

This is actually illegal in NY, but most gas stations do it anyway.

IKEA gives you a discount for using a debit card.

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