Merchant cannot apply surcharge for credit card payments. Refer to "No surcharging" section on page 10 of the VISA Card Acceptance and Chargeack Management Guidelines document (see Useful Links). However, VISA states that "You may, however, offer a discount for cash or another forms of payment provided that the offer is clearly disclosed to customers and the cash price is presented as a discount from the standard price charged for all other forms of payment"
Also see No surcharge laws !!!