european-union payment credit-card
Is it legal for a business to give a discount for paying with cash vs. credit card?
<p>I ate at a Croatian restaurant where I had the option to pay with cash with euros or pay with my credit card.</p>
<p>If I chose to pay with cash, I would be given a 10% discount.</p>
<p>As I have a VISA credit card issued in another EU country, this discount seems to be against the law.</p>
<p>According to <a href="https://europa.eu/youreurope/business/finance-funding/making-receiving-payments/electronic-cash-payments/index_en.htm" rel="nofollow noreferrer">https://europa.eu/youreurope/business/finance-funding/making-receiving-payments/electronic-cash-payments/index_en.htm</a> :</p>
<blockquote>
<h1>Card surcharges are not allowed</h1>
<p>You're not allowed to charge your customers extra for using a credit
or debit card. This applies to all card purchases (in shops and
online) made throughout the EU.</p>
</blockquote>
<p>So, is it a legal loophole to give discounts for paying with cash instead of adding a surcharge for paying with a credit card?</p>
<p>Or is this actually illegal?</p>

<h2>Yes, its legal</h2>
<p>Economically, there is no difference between a cash discount and a card surcharge; legally, there is. That’s because the law prohibits charging <em>more</em> than the advertised price for a given payment method but doesn’t prohibit charging <em>less</em>.</p>
<p>Of course, it’s likely there is some illegality here but it’s not against the customer. A business doesn't give a 10% discount to avoid paying a 1-2% fee. They do it because they are not reporting (some of) their cash sales to the tax authorities and are therefore saving the 25% VAT and 18% company tax.</p>
