Can vendors charge you to use your credit card?

The purchaser's bank (that issued the credit card) and the vendor's bank (with whom the charge slip is lodged by the vendor) charge a percentage of the purchase amount. This amount essentially comes from the amount that is payable to the vendor. As a result, the vendor gets about 1 to 3% less than what he would have received had the transaction been paid for by cash. Some vendors hence tend to charge higher if you use your credit card A merchant has no right to charge more if you use a credit card, although they might offer a discount for cash. Adding a surcharge to a credit card transaction would most likely violate the merchant agreement with the credit card company. For example, VisaUSA Rules: "Always treat Visa transactions like any other transaction; that is, you may not impose any surcharge on a Visa transaction." Violation may result in penalties, suspension or termination.