Legal Question in Consumer Law in California

Split pricing

Shortly after Master Card & Visa were introduced in the late 50's it became illegal for merchants to offer lower proices for cash. Is that law still on the books & eenforced. If so, how are gasoline stations getting by with split pricing?


Asked on 3/25/08, 4:57 pm

1 Answer from Attorneys
Carl Starrett Law Offices of Carl H. Starrett II

Re: Split pricing

Your statement of the law is incorrect. It is against the law to impose a surcharge for using a credit card. However, retailers are specifically allowed by law to offer cash discounts. See Civil Code Section 1748.1. It is also illegal for credit card companies to demand that retailers charge the same price for both types fo transactions.

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Answered on 3/25/08, 5:37 pm


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