Complete Story


Cash Discount

A simple guide for merchants

As credit card processing becomes increasing costly for merchants, there are avenues that allow businesses to help offset the fees associated with accepting digital payments. One of these options is adopting a cash discount program that incentivizes customers to pay by cash or check to help offset these fees.

What is a cash discount program?

It is a program used by businesses to offer a discount to customers who pay by cash or check instead of using a credit or debit card. Merchants can incentivize cash payments by offering a discount on the posted credit or debit card prices for customers that pay by cash or check. By including a service fee in the posted price, cash payments offset the payment processing charges that come with card transactions.

Differences Between Cash Discount, Surcharge and Convenience Fees

With a cash discount program, merchants can build credit and debit card fees into their product or service pricing. Then when customers pay with cash, merchants provide them a discount—usually 3-5 percent—that is shown on their receipt. Merchants are required to display signage notifying customers of the pricing model.

Please select this link to read the complete article from OSAP Member i3 Merchant Solutions.

Printer-Friendly Version