How to Indicate a Cash Discount Through In-Store Signage

Learn How to Legally Post Your Cash Discount Program Signage

Implementing a Compliant Cash Discount Program

To have a successful cash discount program, merchants must follow the rules and guidelines set forth by card issuers. Businesses are legally permitted under the Durbin Amendment of the 2010 Dodd-Frank Wall Street Reform to offer a discount as an incentive to cash-paying customers. The rules prohibit merchants to make a profit on credit card transactions, therefore merchants must post pricing appropriately and with the proper signage when implementing a compliant cash discount program in-store.

Proper signage clearly indicating participation in a cash discount program must be posted at both entryways and at the point of sale. If there is a fee for processing a credit card or a discount provided for paying cash, it must be a clear line item on the customer’s receipt. Lastly, to avoid overcharging and ensure proper line-item display on each transaction, compliant technology that is compatible with your terminals is required.

cash discount program signage

How Does it Work?

price adjustment

Price Adjustment:

Most businesses lose between 2-4% in processing fees, adjust the pricing of goods and services to cover and recoup the processing cost of a transaction. This is the “regular” posted price.
discount promotion

Discount Promotion:

The customers who pay by cash or alternative payment method (non-card-based) receive a discount. In order to maintain legality, the option to pay by cash and receive a discount must be properly displayed with in-store signage and verbally demonstrated to customers at the point of sale.
discount application

Discount Application:

It is prohibited to profit from a credit card transaction; therefore, it is paramount to use compatible technology and a reliable processor that offers a compliant cash discount program. Your point of sale terminal automatically applies the discount that covers the merchant processing cost to ensure accuracy and compliance with the program.
implementation

Implementation:

A reliable processor with compatible technology offers quick setup with easy-to-read statements. Rates are programmed on terminals and ensure that the correct fee or discount is properly communicated on the customer receipt.
fast funding

Fast Funding:

With our cash discount program, merchants keep 100% of their sales without monthly processing fees and batches settle in as little as one day so you receive your funds faster.

Frequently Asked Questions

What is a Cash Discount Program and more—we answer all your frequently asked questions about cash discounts.

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