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.