"George" wrote
Merchants are forbidden from charging a surcharge for credit card use as
part of their merchant agreement.

Good that you are such an expert. You said you have a consulting business.
Want some clients? I am sure my friends family who was informed they can't
offer a cash discount per their contract (and confirmed by their lawyer)
would love to talk to you.

Perhaps it varies or the law has changed, but I regularly shop at a few
places that offer a cash discount. Looks like your friends may need a new
lawyer.

http://fso.cpasitesolutions.com/prem...merchants.html
Note that a cash discount is legal and permitted under all credit card
companies rules. A cash discount offers a lower price for cash than credit;
for example, many gasoline stations offer cash discounts. While this may
merely be a loophole, it is permitted. In addition, there are a few state
governmental agencies, including state tax offices and motor vehicle
departments, that are permitted to charge surcharges due to state laws that
do not permit them to pay discount fees. However, retail merchants may not
impose surcharges.

http://www.fdic.gov/regulations/laws.../6500-500.html
§ 167. Use of cash discounts

(a) With respect to credit card which may be used for extensions of credit
in sales transactions in which the seller is a person other than the card
issuer, the card issuer may not, by contract or otherwise, prohibit any such
seller from offering a discount to a cardholder to induce the cardholder to
pay by cash, check, or similar means rather than use a credit card.