[1Old Pro]

Yep, a lot of small businesses are charging a 2.5-3.5% charge if you use debit or credit. That is part of what the banks charge them. I can’t get mad at them about it. The banks are ripping all of us off with more and more fees.

Retailers used to accept cards because it encouraged business and more potential spending. Restaurants are a bit different I suppose, you know you are going there in most cases and if you know the policy you bring cash or pay the fee. Personally it does bother me and I reduce my tip from a approx 22% ish down to 18% shifting the cost to the server which is unfair, but so is charging the extra 3-4%.

[packrat35]

VISA and Mastercard used to ban these extra charges. But that must have changed as I have seen it in several small restaurants recently.

Its kind of weird in a way. I am also seeing more and more businesses NOT take cash and only take cards, so it is hard to know what to make of the current business models.

[Varda]

Banks do indeed charge a percentage of every transaction.
By charging the same price for cash or card, people who pay cash are subsidizing people who pay with a card.

I used to process cards for a business which did not add the transaction fee to customers who paid cash. Customers who paid with a card paid for the card fees. I like businesses which do that.