Cash Discount Credit Card Processing, Explained
Cash discount credit card processing lets you post one price and give a discount to customers who pay cash. It sounds simple. The rules are not. Here is what cash discounting is, how a cash discount compares to a surcharge, and what to check before you put up a sign.
Card price[amount]
Cash price[amount]
Rules vary by state
What is cash discounting?
Under a cash discount program, your posted prices are card prices. Customers who pay with cash get a discount. Many terminals show both prices at checkout, which is often called dual pricing.
Done well, it can offset part of what you pay to accept cards. Done poorly, it reads as a hidden fee, confuses staff, and can break card brand rules. The difference is in the setup and the signs.
Cash discount vs surcharge
| Line item | Cash discount | Surcharge |
|---|---|---|
| What it is | A discount for paying cash, off a posted card price. | A fee added when a customer pays by credit card. |
| Which cards | Applies to card payments in general. | Credit cards only. Card brand rules do not allow surcharges on debit or prepaid cards. |
| Notice | Clear signs at the entrance and at checkout. | Clear signs at the entrance and at checkout, plus the fee on the receipt. |
| Limits | It has to be a real discount, not a hidden fee. | Capped by card brand rules and by some state laws. |
| Before you start | Your provider sets up the program and the terminal. | Card brands require advance notice before you begin. |
| State law | Varies by state. | Varies by state. Some states restrict surcharges. |
A convenience fee is something else
Card brands generally treat a convenience fee as a charge for paying through a different channel, such as online or by phone, not for paying by card. It is usually a flat amount, and it should not apply when the customer pays in person.
Clover cash discount
Some Clover accounts can run a cash discount or dual pricing program. Whether it is available, and how it prints on receipts, depends on your provider and your settings. Check your receipts, your statement and your program agreement. See how Clover compares in our restaurant and bar POS system comparison.
Credit card surcharge sign template, and two more
Sign 01 . Template
Cash discount notice
Notice to customers
Posted prices are card prices.
Pay with cash and receive a [PLACEHOLDER: percent] discount.
Thank you.
Cash discount notice, template Verify wording with your provider and state before use.
Sign 02 . Template
Credit card surcharge notice
Notice to customers
We add a surcharge of [PLACEHOLDER: percent] to credit card purchases.
This is not greater than our cost of accepting credit cards.
No surcharge on debit cards.
Credit card surcharge notice, template Verify wording with your provider and state before use.
Sign 03 . Template
Credit card convenience fee notice
Notice to customers
A [PLACEHOLDER: flat amount] convenience fee applies to payments made [PLACEHOLDER: online or by phone].
Pay in person to avoid this fee.
Credit card convenience fee notice, template Verify wording with your provider and state before use.
Already running a program?
- 01How the fee shows on receipts and on your statement
- 02Whether debit cards are being surcharged
- 03What you still pay in processing after the program fee
- 04Whether the signs at your door and register match the program
Send a statement. We will check the program too.
Get my free statement reviewCash discount questions
1What is cash discounting?
Cash discounting means your posted prices are card prices, and customers who pay with cash get a discount. Many terminals show both prices, which is often called dual pricing.
2What is the difference between a cash discount and a surcharge?
A cash discount lowers the price for cash. A surcharge adds a fee when a customer pays by credit card. They follow different card brand rules and different state laws.
3Can I add a surcharge to debit cards?
Card brand rules do not allow surcharges on debit cards, including prepaid cards, even when they are run as credit. Rules change, so confirm with your provider before you start.
4Is cash discounting allowed in my state?
Rules vary by state and by card brand, and they change. Check your state rules and your provider's program terms before you use any program or sign.
5Does Clover support cash discount?
Some Clover accounts do, depending on the provider and the settings. If you already run one, we can check how it shows on your receipts and your statement.
Thinking about cash discount? Start with your statement.
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