Dear Linkedin,

Robert Bonomi bonomi at mail.r-bonomi.com
Sun Jun 10 18:40:37 UTC 2012


> From nanog-bounces+bonomi=mail.r-bonomi.com at nanog.org  Sun Jun 10 13:18:06 2012
> From: Barry Shein <bzs at world.std.com>
> Date: Sun, 10 Jun 2012 14:16:10 -0400
> To: Mikael Abrahamsson <swmike at swm.pp.se>
> Subject: Re: Dear Linkedin, 
> Cc: NANOG <nanog at nanog.org>, Joe Greco <jgreco at ns.sol.net>
>
>
> I was under the impression (I should dig out my contract) that
> merchant contracts also forbid charging more for a charge than for
> cash or conversely "discount for cash!" but I see so many violations
> of that particularly at gas stations I wonder if that's negotiable in
> the contract.

The 'true explanation' is even simpler -- your impression is incorrect. <grin>


In the U.S., Visa/Mastercard/Amex/Discover/Diners Club contracts all 
expressly forbid charging extra for a card transaction.  Using language
that applies only to a 'premium' or 'surcharge' applied to card transactions.

They do *NOT* forbid giving a discount for cash payment.  They do not state
it =is= acceptable -- they are simply silent on the subject, which means that
it is not proscribed.

The logic:  The card purchaser must be allowed to buy at the 'advertised'
price.  Prohibiting discounts gets into a 'restraint of trade' issue.

Gas stations that offer a 'discount for cash' do not give that discount 
even for 'house brand' cards -- which do not have any fees that are 
payable to the issuer.





More information about the NANOG mailing list