Cash discount programs and surcharging are two ways to offset credit card processing costs, but they work very differently and have different legal requirements.
Cash Discount Programs
A cash discount program posts the card price as the standard price and discounts customers who pay cash. It is legal in all 50 states. Signage at the point of entry and register is required.
Surcharging
Surcharging adds a fee for credit card use at checkout. It is prohibited in some states (including Connecticut and Massachusetts) and requires advance notification to Visa and Mastercard. It can only be applied to credit cards, not debit.
Which Should You Choose?
For most businesses, a cash discount program is the safer and more broadly applicable choice. Surcharging is better suited to professional services where clients are accustomed to processing fees and state law permits it.
Want to explore a cash discount program for your business? Get a free recommendation based on your statement.
Get Program Recommendation