What is a Cash Discount program?

A Cash Discount Program is a pricing strategy where the prices you display to customers already include the cost of credit card processing. When a customer chooses to pay with cash, debit, or other non-credit methods, they receive a discount at checkout.

This approach helps you offset the cost of card processing by encouraging customers to use lower-cost payment methods, while still giving them the flexibility to pay how they choose.

For example, if an item is listed at $100, and the customer pays with cash or debit, they might receive a discount of 3–4%, paying only $96–$97 depending on the discount rate set by you.

Here are some key benefits:

• Lower processing costs: you significantly reduce and often eliminate the fees associated with accepting credit cards.
• Increased profit margins: since you're no longer absorbing card fees, more of each sale stays in your business.
• Customer choice: customers are encouraged to pay with cash or debit in exchange for a discount, giving them control over how much they spend.
• Simple to understand: all prices are listed with fees included, and the discount is automatically applied when eligible, creating a clear and consistent checkout.
• Legal in all 50 states: unlike surcharging, cash discounting is allowed nationwide and doesn’t require registration with card brands.
• Helps small businesses stay competitive: reducing overhead from card fees can help small merchants compete with larger retailers while offering savings to cash-paying customers.

Do I need to notify my customers about Cash Discount?

Yes, you’re required to notify customers that a Cash Discount is being applied. To stay compliant and avoid confusion, you must:

• post clear signs at your business entrance and checkout areas;
• make sure the signage explains that prices include a credit card processing fee and that a discount is offered for payments made with cash or debit;
• ensure your receipts display the discount applied.

Can I opt out of the Cash Discount program later?

You can choose to opt out of the Cash Discount program at any time. If you decide it’s no longer the right fit for your business, simply contact our Support Team to request the change.

Opting out may require a terminal reprogram or software update, and you may begin incurring standard processing fees again for credit card transactions.