can a NJ business give a cash discount?

[edwill86 0]

I had Someone tell me it was against the law in NJ to offer different prices for cash and credit sales. Any of you NJ business owners know if that's true?

 

The place in question sells prepared food.

 

Thanks!

[GeorgeHM 5]

I will say that sounds funny when almost every gas station has that listed on their price signs.

[PK90 3,573]

No law against it. Do you drive and put gas in your car? Please fix the title.

 

ETA: Beat me by a minute

[9X19 125]

Apparently allowed if you go with the fact that gas stations do it , however they are required by state law to collect NJ sales tax.

[edwill86 0]

That's what I said. He responded by saying "that's only for gas stations"

 

I just want ammo so I can tell him off next time. I can find anything online on the issue.

[boo 6]

I don't remember it being a state law issue, but being part of the agreement between the store and the credit card company. I also recall rules like that being relaxed in the past few years, e.g. stores can refuse credit card purchases below a certain amount. But I'm definitely not an authority on the subject.

 

edit: I see it relates to Dodd–Frank Wall Street Reform and Consumer Protection Act

[edwill86 0]

Apparently allowed if you go with thefact that gas stations do it , however they are required by state law to collect NJ sales tax.

In this case does it matter if its collected or paid to NJ? If the business does not add sales tax on cash purchases to discount it but still pays the tax to the state is that acceptable?

[PK90 3,573]

Yes, but a 7% discount for using cash seems like a lot.

[edwill86 0]

Its really not after all the transaction fees on that card machine. Thanks guys. I'll pass on the info. I knew that guy was full of shit.

[PK90 3,573]

:unknw: I pay <3% total merchant fees, but just build it into the price of my product.

[edwill86 0]

I'm not sure how much we pay. I know amex and discover are crazy high and cost us a lot. Also they hold the money for 3 business days so anything from wed to Sunday takes over 4+ days to be avalible.

[Melgamatic 66]

I'm not sure how much we pay. I know amex and discover are crazy high and cost us a lot. 

 

If you own a business that takes credit cards and you don't know how much you are paying, you might want to pay attention.  You can spend or save a lot of money.

 

Amex is unusual; for many businesses it is the cheapest card to take, or the same as MC/V.  Discover is usually the most expensive, except for some businesses when it is the cheapest.

 

A popular restaurant I am very familiar with is charged 0% by Amex.  In return, "they only take American Express" (although they will take others if really pushed).  Amex also prints their menus and pays for part of their advertising.  

 

You need to decide on a credit card strategy and negotiate it.

[remixer 1,645]

Reward cards are far worse then Amex

 

Some charge the vendor 6%

[Porthole 15]

Good luck searching the myriad of laws to get that answer.

Add to that the different terms used.

 

Examples:

Charge the consumer the discount fee (fee the CC company charges the vendor, usually a flat percentage of the sale or a % and an individual transaction fee) to use a credit card 

A discount for cash payment

A "convenience fee"

 

The cash discount and convenience fee are just ways to get around not being able to charge for the CC discount fee.

 

Even the state of NJ uses the work around if you use your CC on sites like Motor vehicle to renew your registration.

 

NJ Natural Gas and JCP&L use the convenience fee work round to use CC's to pay utility bills.

 

BTW, if you try and run an evilbay auction and add a % of the final bid to offset your paypal fees, EB will strike text or block the auction.

[DaveR 42]

Not illegal to charge fees for a credit card / give cash discount.

 

There are a couple of bills to prevent it, but no law is signed.

 

S-2533 / A-3758

[Gunnz 49]

At a few LGS (brick and mortar) I have asked them if I pay cash can I get a discount... And they have given me 3-5 percent off.

I've never been turned down when I asked.

[CMJeepster 2,781]

Everything in life is negotiable except for death and taxes.

[Mikeythumbs 1]

At a few LGS (brick and mortar) I have asked them if I pay cash can I get a discount... And they have given me 3-5 percent off.

I've never been turned down when I asked.

I tried that at shore shot and it was a no go unfortunaltly this was before I knew about this site I would not buy from them again

[Newtonian 453]

It's legal, but only if you also give the IRS a discount.

[vjf915 456]

My understanding was that it's the opposite.  It's illegal to charge MORE for paying with a credit card.  This prevents companies from charging more for credit card purchases, to avoid eating that charge themselves.  Gas stations get away with it by saying they "charge less for cash paying customers".

[Gunnz 49]

I tried that at shore shot and it was a no go unfortunaltly this was before I knew about this site I would not buy from them again

Really?

That's where I got one of the discounts, as did my buddy.

Next time, ask to speak to someone in charge!

[mustang69 505]

My understanding was that it's the opposite.  It's illegal to charge MORE for paying with a credit card.  This prevents companies from charging more for credit card purchases, to avoid eating that charge themselves.  Gas stations get away with it by saying they "charge less for cash paying customers".

This - I don't know if it's related to all businesses, but I believe gas stations are restricted from charging more for credit cards, and from giving rewards for purchases.  Remember the days (back in the late '60's) when you used to get a hotwheels car or a drinking glass when you filed your tank?  Yes, I'm dating myself.  NJ outlawed the practice.  Gas stations today get around the law by saying it's a discount for cash instead of an increase for credit cards.  Semantics, yes, but when have our laws made complete sense?  I believe the laws were put in place when cash was the primary method of purchase.  The credit card companies made some political donations to find ways to encourage the growth of credit card use.  

[Rifleman1 32]

I had Someone tell me it was against the law in NJ to offer different prices for cash and credit sales. Any of you NJ business owners know if that's true?

 

The place in question sells prepared food.

 

Thanks!

 

 

I don't remember it being a state law issue, but being part of the agreement between the store and the credit card company. I also recall rules like that being relaxed in the past few years, e.g. stores can refuse credit card purchases below a certain amount. But I'm definitely not an authority on the subject.

 

edit: I see it relates to Dodd–Frank Wall Street Reform and Consumer Protection Act

 

 

Not illegal to charge fees for a credit card / give cash discount. There are a couple of bills to prevent it, but no law is signed. S-2533 / A-3758

 

 

My understanding was that it's the opposite.  It's illegal to charge MORE for paying with a credit card.  This prevents companies from charging more for credit card purchases, to avoid eating that charge themselves.  Gas stations get away with it by saying they "charge less for cash paying customers".

 

 

Starting in 2013, it became legal to charge customers extra if they use a credit card, and retailers can even require a minimum purchase amount when you use a credit card. If merchants decide to use credit card surcharges, they have to follow a few rules:

·         The fact that there is a surcharge must be clearly disclosed to you before any transaction

·         The credit card surcharge must be shown on your receipt

·         The surcharge can’t exceed the amount the retailer pays or 4% (you pay the lesser of these two, typically 2-3%)