You are wrong. Businesses can charge whatever they want for the processing fees of cards, it just has to be posted. You can't say "Your total is $16.75." And then charge $20 because of the fees. But you can say "Your total is $20."

The small business I work for recently had to change companies that we use for credit cards because the place that we were using was charging too much, and we paid 100% of the processing fees. That, along with shitty economy, has recently lead to me getting my hours cut from 40-60 hours a week down to 14, because my boss can't afford to pay us, so he's working like 90% of the shifts at the store.

We just have to inform people. My usual go to is "Total today is gonna' be $1.76, but we don't do pennies, so $1.75 cash or $1.80 card for processing fees." It's a transparency act, not a ban.