January 3, 2000
by Stephen Hildreth
Editor-in-Chief

Yesterday's report on cash discounting unleashed a flood of email from readers who are fed up with this practice. A few readers pointed out that some credit card companies ban this type of policy, or that it's usually restricted to grey market resellers.

From reader Shawn Trokhan:

"I read your article on cash discounting. I always thought this type of behavior was illegal. Maybe these guys are getting around it somehow, but if you read the FAQ on Visa's web site (http://www.visa.com/ut/faq/main.html) they say:

Are Visa merchants permitted to establish minimum or maximum transaction amounts? Are they permitted to charge me extra for using my Visa card?

In general, these actions are not permitted under the Visa regulations that all merchants must follow. These regulations are enforced through Visa member financial institutions. If you've had a problem with a specific merchant, please contact the financial institution that issued your Visa card. Your financial institution knows the regulations, and they can file a complaint regarding the merchant. You'll find their telephone number on your Visa statement."

From reader R. Burton:

"Just read the article on cash discounts. You should know that both Visa International and Mastercard specifically prohibit a credit card surcharge, and these merchants can get into big trouble by continuing these practices, let alone turning off their customer base. I'm saving the article and using it a basis for my own "who not to patronize" list."

Finally, we heard from a representative at CDW. CDW is one of the good guys, because they do not support cash discounting:

"You may have noticed that this issue you bring up, only invloves grey market resellers. (companies not authorized to sell Apple branded equipment) Often these companies buy refurb, closout and warrenty repaired machines and resell them to an unsuspecting public. While all are not this unscroupulous. It is a commonn occurance. It is done, to entice you to pay with cash, since once they have your money, you basically have no recourse should you get a bum deal."

From reader Charles Sorgie:

"I would put under this same category (a) shipping/handling charges, and (b) restocking fees.

I also think that I have the clincher for the theft problem. Just develop a carrying case that snaps around a Pismo, and makes it look like a Windows laptop. You'd be safe then!"