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.