Location:
CONSUMER CREDIT; CONSUMER PROTECTION; RETAIL TRADE;
Scope:
Connecticut laws/regulations;

OLR Research Report


January 12, 2010

 

2010-R-0007

CREDIT CARD PROCESSING FEES AND CASH DISCOUNTS FOR BUSINESSES

By: Duke Chen, Legislative Analyst

You wanted to know if it is illegal to impose a fee on credit card purchases to cover the cost of processing the transaction. Also, you wanted to know if businesses are allowed to offer discounts to customers who pay with cash.

By law, businesses cannot charge customers more for paying with a credit card or any other means of payment, including cash and checks (CGS 42-133ff(a)). But it allows them to offer discounts to induce customers to pay by cash, debit card, or other means rather than credit card (CGS 42-133ff(c)).

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