Is this legal?

[mom-from-missouri]

Are you sure it is legal, or is it just common practice? Businesses are allowed to give a reasonable cash discount to compensate for the fees associated with processing credit cards, but 32% is way beyond what would be considered reasonable.

I use to moonlight in a bank for 13 years, (until March pf 06) and it was legal. People would complain to the bank about it (esp if it was the bank visa card). A few even tried to go to small claims court and lost. Basically in MO, its a loophole. Its considered a discount for cash. The bank had so many complaints that there was even a brochure printed up to give them. Basically customers were told if they didn't like it, don't use the card.

A highschool friend works in the other bank in my home town, and one day while comparing notes, we discussed that issue. Its the same there also-she would know, she is one of the bank VP and has worked in banks for over 30 years with a degree in it-and she is also a finance attorney.

Your state may have different laws, but in Missouri, it is legal and in small towns, fair practice. Locally, gasoline is 11 cents a gallon cheaper if you pay with cash, 7 cents cheaper with a local check (and 2 forms of id), or pump price if you use a credit card. Is the man illegal??? No. He simply is trying to avoid bad checks, stolen credit cards, and credit card fees. Can I assume he is not reporting it to the IRS??? no, as his records of fuel bought and sold speak for themselves.

[disneysteve]

Basically in MO, its a loophole. Its considered a discount for cash.

Interesting. Thanks for the info. I'll remember to bring lots of cash if I ever visit MO. I was there once around 1989 but only overnight for a med school interview.