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Restaurants, Including OPTP, Accused of Overcharging Customers for Card Payments

Discover how some restaurants are charging the same total amount for food, regardless of whether you pay with cash or a card. Uncover the deceptive pricing tactics and learn why regulators need to take action.

Restaurants, Including OPTP, Accused of Overcharging Customers for Card Payments

Customers who buy food at different restaurants, whether they use credit/debit cards or cash, pay the same amount. A survey by found that some food places charge the same electronic bill, even though they apply a 5% sales tax for cards and a 16% tax for cash payments.

If you pay with cash, they charge a 16% sales tax. If you use a digital card, they charge a 5% sales tax. However, the restaurants have different prices for cash and card payments, but the total amount after the 5% or 16% tax is the same. They do this to make customers paying a lower tax rate or a higher tax rate pays the same total.

Restaurants, Including OPTP

For example, at OPTP, they compared receipts for the same products from the same restaurant. One receipt is for a cash payment with a 16% tax, and the other is for a digital card payment with a 5% tax. When customers pay with a card, the restaurant increases the price instead of giving customers the savings from the lower tax.

An OPTP employee claims that the system is fair and doesn’t overcharge. However, a comparison of the receipts shows that the restaurant is inflating prices for card payments.

Some restaurants are not passing on the benefits of lower taxes to customers who pay with cards. The reduced tax on digital payments was meant to support a cashless economy, but some restaurants seem more interested in making extra profit.

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Regulators, especially the FBR, should take quick action against these restaurants that charge the same amount regardless of the payment method.

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