What is the difference between Cash Discount and Surcharge?
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Cash Discount and surcharge are different methods of handling credit card processing fees. The key difference is that Cash Discount lowers the price for cash, while surcharge adds a fee for credit cards. Read on for more details:
Cash Discount
- The listed prices already include card processing fees.
- Customers who pay with cash or debit receive a discount at checkout.
- This method rewards non-card payments and is legal in all 50 states.
Surcharge
- A fee is added on top of the listed price only when a customer pays with a credit card.
- Debit and prepaid cards cannot be surcharged.
- Surcharging is allowed only in certain states and requires registration with card brands along with proper signage.