Cash Discount vs. Surcharge

Understand the differences between Cash Discounting and Surcharging in order to remain compliant with Card Brands' rules.

A cash discount is when you post credit card prices and offer a discount on that price for customers who pay with cash.

The “posted price” refers to prices posted on shelves, menus, or in advertisements.

Compliant cash discount programs must increase the posted price listed on the shelf and then reduce it at the register when customers choose cash.

A surcharge is when you advertise or publish a cash price and charge an additional fee on top of the advertised or published price. This surcharge can only be applied to Credit Card sales only.

In the first situation, a customer pays less than the advertised or published price. In the second case, a customer pays more than the advertised or published price when paying by Credit Card.

RewardPay

In order for you to begin processing under a compliant surcharge program you will need to decide to pass through a cost of 4% to your customers who pay by Credit Card.

  1. Find a processing partner that offers a compliant program that does NOT impose a “service fee” at the point of sale a.k.a. customer checkout process when a customer chooses to pay by Cash, Debit Cards, or Prepaid Cards.

  2. Consult with a Payroc Payment Professional to decide if RewardPay is right for your business and the saving your business can expect OR click here to calculate yourself.

  3. Enroll in the RewardPay Program and let Payroc handle the rest.

CashRewards

In order for you to begin processing under a compliant discount for cash program, you will need to manage and markup the advertised or published price and offer a discount for purchases made with cash at the point of sale.

  1. Find a processing partner that offers a compliant program. This does NOT impose a “service fee” at the point of sale (customer checkout process) that is then waived when a customer pays by Cash.

  2. Consult with a Payroc Payment Professional to decide if CashRewards is right for your business and the saving your business can expect OR click here to calculate yourself.

  3. Enroll in the CashRewards Program and let Payroc handle the rest.

ARE YOU NOT SURE IF A PROGRAM BEING OFFERED TO YOU IS 100% COMPLIANT WITH VISA/MASTERCARD?
LET US HELP YOU FIGURE THAT OUT.

To learn more on cost savings, card compliance and same day funding.