Many upmarket establishments do not charge a transaction fee because this cost is loaded in the price to the customer. There are other merchants, operating at low margins and believing in cash purchases.These people charge a transaction fee on purchases by credit cards. They keep the card swapping machine mainly to attract prospective buyers of large value purchases. The transaction fee is thus waived if a large amt purchaser objects to it and charged to the small value purchaser of low value items to force cash purchases. The transaction fee is thus used in a discriminatory manner by some merchant establishments. If a customer persists then these merchants also say that they do not accept so and so credit card; etc. Such a practice was common with the older Diners Card. It is for the buyer to decide whether to patronise such establishments or not. In the meanwhile the credit card companies can make a list of those who charge transaction charges and make public announcements in the name of fair business practices. Singapore tourism regularly publishes lists of shops who overcharge their customers or avoid paying sales tax or sell cheap and unreliable goods or indulge in discriminatory practices.
