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From: stanwyck@ihuxr.UUCP (Don Stanwyck)
Newsgroups: net.legal
Subject: Re: credit vs cash sales (surcharges are apparently legal)
Message-ID: <1176@ihuxr.UUCP>
Date: Fri, 24-Aug-84 13:59:01 EDT
Article-I.D.: ihuxr.1176
Posted: Fri Aug 24 13:59:01 1984
Date-Received: Sat, 25-Aug-84 07:29:43 EDT
References: <904@ucla-cs.ARPA> <930@ucla-cs.ARPA>
Organization: AT&T Bell Labs, Naperville, IL
Lines: 27

Even before the law expired that banned credit sur-charges, it was
legal to offer cash discounts.  It was simply that you could not *add*
to the price for using credit.  Many stores did in fact have ~5%
discounts to cash buyers.

This is in someways related to the very common business practice that
is sometimes refered to as "2 in 10, net 30", where you may take a 
2% discount if you pay the invoice within 10 days, or pay the net value
of the invoice within 30 days.  It comes down to who gets the use of the
money, and when.

Not all banks immediately post the credit sales to the merchants account.
Some may (I am not sure) post only a percent.  I have been with businesses
where the bank withheld payment for 5 working days for credit slips, and
others where the bank posted immediately.  The former was an outlet that
seemed to draw a (relatively) large number of bad charges.

This is, of course, a common practice (delayed posting) for checks tendered.
The merchant has a hold on the account until time for the check to have had
a fair chance of clearing.
-- 
 ________
 (      )					Don Stanwyck
@( o  o )@					312-979-3062
 (  ||  )					Cornet-367-3062
 ( \__/ )					ihnp4!ihuxr!stanwyck
 (______)					Bell Labs @ Naperville, IL