Further, credit card acceptance usually produces higher sales for merchants, offsetting the cost of processing credit card transactions. Note that a cash discount is legal and permitted under all credit card companies rules. While this may merely be a loophole, it is permitted. In addition, there are a few state governmental agencies, including state tax offices and motor vehicle departments, that are permitted to charge surcharges due to state laws that do not permit them to pay discount fees. However, retail merchants may not impose surcharges.
Merchants also believe consumers with credit cards are less likely to bounce checks.
When merchants write your credit card number on your personal check, they are subjecting you to possible fraud. Anyone who sees the check sees your name, address, telephone number, and credit card number. Further, several states use an individual's Social Security number as the only identifying number on a driver's license. Once a thief has your Social Security number, along with the other information on the check, he or she can get your credit report, and even apply for credit in your name. Someone can use your credit card number to order merchandise by phone or through the mail by requesting the merchandise be sent to a post office box or an address other than your own.