I'm aware that's what they meant. I was pointing out that it's a facile argument. On the one hand, you might as well assume the fees are "baked in" from the pastry delivery charges, or the extra time necessary to make a pour-over, or the electrical bill. There's certainly overhead associated with a credit card, but if you add it in in any way visible to the customer, Visa, Mastercard and Amex will all revoke your agreement. Also, any sorts of charges are flatly illegal in 10 states. On the other hand, cash discounts are entirely legal. So is that discount "baked in?" If the shop offers no cash discount (most commonly seen at gas stations), the answer is no. Even though it's perfectly legal. Even though credit card transaction fees are usually between 3% and 7%. So - variable overhead you are explicitly forbidden from outlining vs. fixed overhead you are explicitly permitted to outline. "baked in" is a dumb way to describe it.