What is Cash Discounting Compliance?

Cash Discounting Compliance is when all pricing of goods and services incorporates the cost of transactions. It is against compliance to only charge a higher amount when paying with credit card. The price including the cost of transactions should be considered the price on all receipts, tickets, services menus, shelf talkers, etc. Then you can offer a discount if the customer pays specifically with Cash.

Cash Discounting Compliance Video from NY Department of State: https://www.youtube.com/watch?v=-Dt7Hq9yQVA

Original Video Source: https://dos.ny.gov/business-resources

The compliance information happens to be from NY State, however it is applicable to all 50 states in alignment with Cash Discounting laws everywhere.

What is the difference between Surcharging & Cash Discounting?

Surcharging is when you charge an additional amount for credit card processing. Surcharging is not legal in all 50 states, it requires registration with credit card companies and has high penalty rates when used without compliance.

Cash Discounting is when all of your goods and service prices are increased to account for the cost of doing business. When a client pays with Cash specifically, they are given a discount. It is legal in all 50 states, requires no formal registration and is a growing trend for small businesses.

Source: FiServ Merchant Requirements