John Tuttle recently posted about U.S. Federal Regulations in effect
that control credit card charges [010309 MMDigest].  There are
different regulations in different countries, but the same, very
easy solution applies.

Here in the frozen North, known now as Canada (until Quebec gets it
changed), it is the credit card companies who make the rules!  If you
are in a business that accepts payment by credit card, it is written in
your contract that you agree NOT to pass on any service charge to the
customer.

The result: you adjust all your prices to reflect this additional cost
of doing business, hence the person enjoying the credit is the one to
pay for it!  To keep things fair, you offer a discount for cash.  There
is no regulation against this.

The net result is that the plastic card customer is paying for the
costs of credit; the cash customer is not subsidizing the other guy's
credit, and you as the merchant are getting your required amount no
matter what way the sale is made.  Book keeping is much the same, no
matter if you are adding on a percentage service charge for plastic,
or taking off a discount for cash.  Human nature makes most folks
choose the discount!

David and Goliath -- the banks vs. the little people!

Best to all - Ken Vinen