How to Indicate a Cash Discount Through In-Store Signage

Learn How to Legally Post Your Cash Discount Program

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.

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How Does it Work?

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:

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:

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:

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:

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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