The Boston Globe reported that Boston businesses are taking action against inflated credit card processing fees by offering customers discounts if they pay cash.

A business profiled is a Japanese restaurant which decided to offer more than half off on Sundays to customers who would forgo using credit cards for cash.

“We’re like, ‘Why are we giving that money to the credit card companies? They’re like loan sharks,’’’ owner Diane Chung said. “Give it back to the customer and everyone’s happy.’’

Business owners have been increasingly complaining about swipe fees affecting their bottom lines in a down economy. Credit card companies counter that rates are fair and have not increased as much as businesses claim, and that even if fees were lower, businesses would not pass them on to the consumers.

“They [businesses] want to have Congress come in and regulate a business-to-business contract under the guise that they’re doing it for customers, when, in fact, they’re trying to line their own pockets,’’ said  Ken Clayton, a senior vice president for card policy for the American Bankers Association.

Many consumers can’t think of denying themselves the luxury of using credit cards which they use to accumulate lucrative miles and points.  To them, the benefit of miles outweigh the benefit of a discount.

Businesses should not have to forgo customers due to inflated credit card processing costs. TransFS.com exists to help business owners get the best deal on credit card processing. Check out our credit card processing calculator (it’s free) to figure out how much your business can save, and start an auction to begin saving today.

Image thanks to http://www.flickr.com/photos/78695167@N00/442805346/