It’s a cost to the business owner just like any other cost. Costs aren’t just “absorbed” if the business is to remain viable. Many small businesses operate on very small margins. Sure, make it illegal to charge an extra CC fee. The business owner will just raise prices on everything. I would rather have the option to pay cash to get a lower price.
Exactly.
Except it's a cost that only comes with a subset of your customers.
Adding a small charge for customers who use credit cards is no different than a parking garage charging more for valet parking than self-serve parking, as I see it.
I think the optics of it is worse than the justice of it. If credit card transactions are less than 15% of your business, that might be OK. But your business reputation may suffer if a sizable portion of your customer base prefers to use credit cards.