Credit card companies are offering a service, and of course retail shops can choose whether they want to allow the use of credit cards as a form of payment. However, I believe the card companies are overstepping their boundaries when they require retailers to charge the same amount for both cash and card payments.
The retailers have no choice. They are forced to pay the transaction fee when a customer pays with a credit card. They should have the right to pass that fee to the customer. Customers will either pay the higher price, pay with cash, or purchase their goods from another store that doesn't charge the transaction fee. The credit card company may lose out if the customer decides to pay in cash, but I still think it is unfair for the card company to tell the retailer how to run their business.
The Consumer Council has sided with the card companies on this issue. If that is their policy, I suppose there is nothing that can be done. However, I am disappointed that the Council has sided with big business rather than try and help out Hong Kong's small business owners.