Is it legal for a visa merchant to have a convenience charge?

Most visa processing companies have the requirement with her processing contract that does not allow for this. So here is how you get around it.

You raise all the prices a dollar, and give a discount for cash.

Else she would be risking her ability to accept credit cards and one of her customers might narc on her.

--small business owner that accepts credit cards

I agree with the posters who stated it is against the credit card company policy for a merchant to charge fees.

Not only can she lose the right to do business with Visa, she can also face a stiff fine from Visa if a complaint is filed.

Also, if she lives in one of the following states it is illegal by state law to charge fees when a credit card is used

California

Colorado

Connecticut

Florida

Kansas

Maine

Massachusetts

New York

Oklahoma

Texas.

I'm SO turning in those small, crappy gas stations that charge convenience charges after reading these answers. As a customer I get pissed if I see a sign that says there is a fee for using credit cards!

yes and no

what she cannot do is charge more for the use of a credit card but what she can do (which is effectively the same thing but does not violate the merchant's rules) is offer a cash discount of $1.00

No, credit card companies don't allow it. They can loose their merchant account privelidges if they tack on any additional fees