In some states the customer can be assessed a surcharge for using a credit card. However, there are laws against credit card surcharges in CA, CO, CT, FL, KS, MA, ME, NY, OK and TX. Additionally, Visa and MasterCard prohibit surcharges. American Express discourages them in general, and prohibits merchants from charging them if they also accept MasterCard or Visa. Discover allows surcharges on credit card purchases except in the above states. According to Bankcard Holders of America, there is one exception to the no surcharge law. If you pay state license fees by credit card, you may have to pay a surcharge. There are no exceptions for retail merchants.

Cash is still king however.


Although merchants are often prohibited from charging surcharges for using credit cards, they are permitted to give cash discounts. In many areas they can't charge you more than the ticketed price if you pay by credit card, but they can charge you less if you pay cash. Confused yet? (We are!)

Source:http://www.credit-factor.com