Legal Question in Business Law in California

There is a law (a statute) that prohibits merchants from refusing to accept a credit card because the cardholder doesn't produce personal identification, but it does not seem to prevent a merchant from refusing to accept a credit card for other reasons. Indeed, while researching your question, I came across information such as credit card issuers encourage merchants to refuse credit card useage when, for example, someone is declined for a $1,000 charge and then tries to use the same card for a lesser amount - like a fishing expedition to find out what the card is good for - and therefore it might be a "hot" card. Sort of like the principle that an employer can fire someone for a good reason, or for no reason at all, but not for a bad reason.

In a couple hours of on-line research, I found no statute and only one unpublished appellate decision containing anything directly on point. In that case, the appellate court agreed with a trial judge that if a merchant refuses to accept a credit card when the contract between the merchant and the customer expressly or impliedly permits payment by credit card, that is a breach of contract and, while the merchant cannot be forced to take the card, the merchant will be civilly liable for damages, if any, for the breach.

Note that the contract between the customer and the merchant need not be in writing. Having credit card signs all over the shop may, indeed probably does, make an election to pay by credit card an implied term of the contract.

So, I think the bottom line is that you can't oblige the auto repair shop to take payment by card if it refuses, but you could take them to court and allege a breach of contract and maybe try to prove some damages by alleging (if it is true) that you didn't have enough cash that day and because you couldn't pay for the car you had to rent one for the weekend at a cost of $X.

The shop may have defenses to a lawsuit for an alleged breach of contract. For example, if the shop knew or had good reason to suspect you were going to dispute the charge as soon as it returned possession of the car to you, and hence surrender its lien for the charges (which is based on possession), it might avoid liability.

Overall, I'd say you have some chance to prove and get a little damages, but there is no general law giving you an open door to demanding your card be accepted or to have punishment heaped upon the repair shop.