Cash Discounting and Surcharging
Cash Discount & Surcharging Programs
A cash discount program allows merchants to offer a lower price to customers who pay with cash, debit, or check, while standard pricing applies to credit card transactions. Unlike surcharging, cash discounting is not considered a credit card fee because the discount is applied to non-credit transactions rather than adding a fee to credit card purchases. Both TSYS and Fiserv support cash discounting and surcharging programs.
| Credit Card Surcharge | Cash Discount |
|---|---|
| Displays cash prices; adds up to 3% fee (not greater than the actual processing cost) to credit card transactions | Displays card prices; offers a discount of up to 4% when customers pay with cash |
| Surcharge disclosure signage required at both the point of entry and point of sale | Merchants must clearly and conspicuously disclose the cash discount program |
| Restricted in CT, MA, ME, and PR (CO capped at 2%) | Permitted in all 50 U.S. states |
| Applies only to credit cards; debit card surcharges are prohibited | Applies to all payment methods, with a discount provided for cash payments |
| Processor and card brand registration required | No card brand registration required |
| Enrollment | Enrollment |
| Signed surcharge addendum required | No addendum required |
