Can merchant take CC for one item and not another?

[Anonymous]

DH went to local convenience store to buy gas and cigarettes on his card as he usually does. (rewards card) and was told they weren't accepting CC's for cigarettes anymore.  I've never heard of this happening before.  I've sent a complaint to Mastercard, but was just curious if anyone else has experienced this?  I can't imagine why they're doing this. Needless to say he didn't use it for the gas  

[Anonymous]

Print out the mastercard merchant agreement and take it to them, let them know you will be filing complaints.

[Anonymous]

1 Acceptance of Card Transactions

1.1 The following requirements apply to all Card transactions: (a) you cannot establish minimum or maximum amounts as a condition for accepting a Card; (b) you cannot impose a surcharge or fee for accepting a Card; (c) you cannot establish any special conditions for accepting a Card;

IE, we will take your card as long as you dont buy smokes..