Cash Discounting FAQs

What is cash discounting?

Cash discounting is something that allows anyone that accepts credit cards at their business to offset their credit card processing fees.

How does Cash discounting help me and how does it effect my customers?

By enrolling in cash discounting it offsets thousands of dollars for small businesses but only adds cents on the dollar for customers. Even if you increase your prices by 4%, on a $10 check, that is 44 cents. If it is a $50 check that is 2 dollars and so on.

How does Cash Discounting Work?

Cash discounting works by increasing your inventory prices from anywhere from 1-4% and then, if a customer pays in cash you provide a discount of the same amount. If the customer pays with a card, you leave the price the same.

If your business processes $100,000 a month, by using this simple process you will offset about $50,000 a year.

Is cash discounting legal?

In short, yes.

Cash discounting in the form of dual pricing as described above is legal in all 50 states.

Surcharging, however is illegal in Maine, Massachusetts and Oklahoma and has restrictions in Connecticut, Colorado and New York.

What is surcharging?

Surcharging is when the customer uses a card a fee is added on to the bill.

At first this sounds confusing but the easiest way to understand it is: cash discounting is providing a discount while surcharging is adding a fee.

Have other questions about Cash Discounting?

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