Cash discounting 101: how small shops cut card fees
What a cash discount program is, where it’s allowed, and how to set one up the right way.
A cash discount program lets you post one price for card payments and offer a lower price to customers who pay with cash. The difference covers most or all of what you pay to accept cards.
How it works at the counter
Your terminal or POS shows both prices on every receipt. The customer chooses how to pay, and the right total is applied automatically. There’s no math for your staff to do.
Cash discount vs. surcharging
They sound alike but follow different rules. A cash discount lowers the price for cash. A surcharge adds a fee on top for credit cards, and it comes with stricter card brand rules and state-by-state limits.
Doing it the right way
- Post clear signs at the entrance and the register.
- Show both prices on receipts.
- Apply it the same way to every customer.
- Tell your regulars before you start.
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