A Russian food store I used to frequent now charges a customer service charge at checkout

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In Brooklyn (NYC) there is a popular Russian neighborhood called Brighton Beach. The entire street of Brighton Beach Avenue is filled with Russian food stores, restaurants and other businesses. I used to go there for food shopping in the past. One of the food stores that I used to frequent now put up a sign letting customers know that a 3.99% customer service charge will be applied to all the sales at this store. Those paying with cash will get a 3.99% discount applied during checkout. This means that those that don't have cash on them (or enough of it) and have to pay with their credit/debit cards will have to pay a 3.99% fee. I know that the store pays a fee for every swipe of the credit or debit card transaction that happens at the store. So, it seems that now they are making customers pay it, though I am not sure if 3.99% is the exact fee that the store pays for every card transaction. I have never come across a business that has customers pay a fee for using their card to make a purchase with the exception of paying a parking or camera violation ticket or property tax online via the NYC government website. It is crazy for a store to do this. And to call it a "customer service charge" is ridiculous. What service are they providing aside from checking you out? None! Apparently, they are legally allowed to do that, especially since they display a notice letting customers know about it. Would you shop at a store that charges you 3.99% or any other % for that matter for using your card to check out? I wouldn't. Out of principle. And for the fact that I never carry much cash in my wallet...