How it looks to customers
Shelf or menu prices show the regular (card) price. When a customer pays cash, the receipt shows the discount. Signs at the entrance and at checkout explain the program.
Surcharging & cash discountWhat is a cash discount program, and how does it work?
A cash discount program sets your posted prices at the card price and gives customers a discount when they pay with cash. Unlike a surcharge, it does…
THE SHORT ANSWER
A cash discount program sets your posted prices at the card price and gives customers a discount when they pay with cash. Unlike a surcharge, it does not add a fee to card payments; it rewards cash. To be compliant, the discount must be real, clearly posted, and shown on receipts, and the program must follow card network rules and state law.
Updated · Waytrix Pay editorial team
TOPIC
What makes a program compliant
Set up the program with your processor and POS so it is implemented correctly:
- Posted prices are the card prices; cash is discounted from them.
- Clear signage before and at the point of sale.
- Receipts that show the cash discount, not a card fee.
- Compliance with card network rules and any state requirements.
Cash discount vs. surcharging vs. dual pricing
Surcharging adds a fee to credit card payments and is limited to credit cards. Cash discount lowers the price for cash. Dual pricing shows both a cash and a card price. Each has different rules; the right choice depends on your industry, customers, and state.
Things to weigh
Programs can reduce processing cost, but some customers dislike paying more for cards. Consider your competition and customer expectations, and compare the savings with your current effective rate using the merchant fee calculator.
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