For the sake of semantics, note that this is really a "cash discount", not a "credit surcharge". While you cannot charge more for using a credit card, you can give a discount for using cash. The only reason I mention this is because a "cash discount" has been common for many things for many years.
It's true that the CC fees are just passed on to consumers, so I'm not opposed to a cash discount. In most cases the cash discount is probably greater than the "rewards" you get from a credit card.
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