The restaurants doing that must realize they may lose some business.

Restaurants raise their prices for a variety of reasons. When SF passed a law a few years ago requiring employees be given at least a minimum level of healthcare coverage, some restaurants added a surcharge of a few percentage points to their prices and noted same on their menus. Some patrons may have groused about it but I doubt many did because most people thought the coverage was a good idea.

Other than the odd taco stand or small place, a restaurant in this area that decided to discontinue or charge extra for accepting credit cards would certainly lose business. There's too much competition among restaurants here, no need to put up with inconvenience that can be avoided elsewhere (unless there's something special about the place). I know a few that are cash only but all have the 3rd party ATMs inside and, I've noticed, an older clientele. Judging by my own kids and others I know, Millennials seem to want to avoid carrying or using cash and never write checks. Maybe that makes me young at heart, I'm the same about checks and I never use cash unless my purchase is just a few dollars - like less than $10.

Edit to add - there are some gas stations that have different cash and credit prices. The ones that do seem to be less busy than others but I have no real data for that impression.

Wow, that's high. I've seen the surcharge that Elmer talks about in San Francisco, and I've also seen a small fee for using a credit card in some smaller mom and pop type restaurants, but it's usually less than 50 cents, and only applies when a minimum isn't met. I have to pay it sometimes because I hardly ever carry cash, but I don't mind.

I think that's going to backfire. People aren't going to change their money habits based on a few restaurants, and I'll bet their business decreases. It's also possible servers will get less of a tip to make up for it, though they aren't at fault.

Perhaps it is just my state but there are rules regarding credit cards like you CAN'T tack on money for the fees (nor can you put a minimum on the amount you can charge i.e. "you cannot use a cc for amounts under $10") Nor can you offer a "cash discount". It's illegal. Although I've seen some businesses with the "minimum for credit card" posted near the cash register. Of course, you CAN raise your prices (for everyone) to reflect CC charges. That's legal.

This is interesting. I came upon a mom and pop place that had a surcharge a few years ago. I was informed before I paid. It wasn't much. Less than 50 cents. Reading this post it got me to thinking about the legality. Our state, California, banned cc card surcharges back in 1985. However in 2015 a federal court found that law unconstitutional so presently the surcharges are allowed as long as they are upfront about them. Unless there is an update I missed.
https://oag.ca.gov/consumers/general/credit-card-surcharges

Texas is one of only 10 states where it is illegal to add a surcharge or 'convenience fee', or whatever they call it, to credit card sales. Businesses can, however, offer discounts to customers who pay cash, if they want to. Government agencies are exempt from this law, though. So municipalities and government agencies can charge a fee if you pay your taxes, or other government required fees, with a credit or debit card. I believe there is a federal 4% limit on what can be charged in other states. I'm not sure about minimum credit/debit card purchases, that may be legal here, I think I've seen it in some dollar stores. A minimum makes sense, though. It's hardly worth the hassle for a merchant to deal with credit/debit cards for a one or two dollar purchase.

Rusty

Interesting, watchme and rusty.

I think you'll agree, if a discount for cash is allowed, that's identical to an extra charge for using a credit card. Legal formalities direct a different form but, ultimately, the same result.

Looks like Texas is also fighting a similar issue in the courts. The argument is exactly how Snidely describes the loopholes being used.
https://www.law360.com/articles/908984/high-court-remands-texas-credit-card-surcharge-case

It's allowed in Ohio, but I haven't witnessed any surcharge notices at restaurants or other merchants, even the small mom & pop stores.

Ok, I get a little confused by this: is a debit card considered cash? or is it considered a credit card? I've seen charges of $.25 for using a debit card, at the local drive-thru for instance.

Both debit cards and credit cards charge the business a fee when the customer uses either.