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Extra charges on payment made by credit card ?

I went to a shop “TEC ZONE” at Raghuleela Mall – Kandivali west to by a mobile. On negotiating the shopkeeper agreed to offer me the piece at a price available in another local shop in the vicinity.

When I went to make payments I was asked to pay 2.5 %  extra for paying by credit card, which was never charged by any vendors so far as I do most of my purchases by cards.

I thought the vendor was trying to flees customers by using this tactic of reducing the price first and then charging the difference by additional 2.5% fees for paying by credit card.

I did not buy the product as I felt I was being cheated, though the extra amount was approx. Rs. 500/-.

I want to know if it is legal to charge extra if payments are made by credit cards by vendors.

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