re: Restaurants charging 4% for using credit card

For a very long time it was illegal in Texas —and still may be—to explicitly charge a (let’s say a 4%) credit card transaction fee, so companies started offering a 4% discount if you paid in cash.

It was just a simple math solution (loophole) for them to avoid explicitly stating that they were up charging you for their credit card transaction merchant fee.

I frequently see cash discounts offered at small restaurants. Presumably this is to play it safe.