Is a Cash Discount Program a Compliant alternative to surcharging

Why most cash discount programs are not compliant

This video goes over why most cash discount programs are not compliant. It is a way for merchant service companies to find a workaround from going through compliance of surcharging. Compliant credit card surcharging solutions make it much easier for a merchant to be compliant without making so many adjustments to their business.

Some companies offer a “cash discount” program. Is this compliant?

Most “cash discount” programs are non-compliant because they list the cash price on the shelf and then mark it up at the point of sale.

When you add a fee to a listed price, you must comply with the card brand rules, and must not apply the fee to a debit card.

A compliant cash discount would show the “credit card price” alongside the “cash price” with equal prominence whenever prices are posted or quoted.

Almost all “cash discount” programs fail to meet these requirements, risking fines from the card brands and state attorneys general.

Requirments for Compliant Cash Discount Program

  • Must Keep Prices the Same and Lower for Cost for customers who pay with cash

    • A compliant cash discount program requires the business owner to keep prices the same and lower them when customers pay cash. This is not effective for businesses looking to eliminate their merchant processing fees.
  • Only works with card-present transactions

    • A Cash Discount program only works with card-present transactions. Therefore a cash discount program would not work for over the phone transactions or online payment gateways.
  • Best Alternative - Compliant Surcharging Solution

    • A Compliant Surcharging solution is much easier to implement than a cash discount program.
    • Compliant surcharging solutions can be used for all types of ways businesses accept credit cards.

Accept Credit Cards for 0%

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