Merchant Services Cash Discount Program: How You Benefit

Why Should I Use a Merchant Services Cash Discount Program?

Right now, you might be asking yourself: what’s so unique about a cash discount program? Luckily for you, the answer is pretty simple. See, when your customers use their credit cards, you have to pay for payment processing fees. With cash discounts, you can recoup the 2-4% fee per transaction that credit card sales typically cost you. It also helps customers make informed decisions about their payment options, and they’ll appreciate your business’s transparency.

Pay With Cash Discount Chalkboard Sign in Shop

How It Differs from a Surcharge Program?

Think of a merchant services cash discount program more as an option to reward the cash buyer rather than a type of punishment for the credit card user. Remember, cash discounts help reduce payment processing fees: they aren’t meant to act as a substitute for a payment processor. So, the listed price for your items doesn’t go up because you’ve used a credit card; the price remains the same.

The critical difference between a cash discount program and a surcharge program is that:

  • With cash discounts, merchants display credit card prices of their products and discount that price for customers who pay with cash.
  • Surcharges are when merchants show cash prices of their goods and then charge an additional fee on top of that price for consumers who pay with their card.

However, surcharge programs are legal in only 40 out of 50 states, which means you might not legally be allowed to implement this in your home state (or possibly in one of your franchise locations).

What You Need to Offer Merchant Services Cash Discount Program

Before you get started with a cash discount program, there are a few things you need to consider first. It’s essential that you display appropriate signage that explains the program clearly and follows the legal standard. Ensure that you indicate a fee for a cash discount provided for paying cash or a processing fee for credit card use as an apparent line item on the customer’s receipt.

Also, you’ll need the ability to integrate with a card processing partner that can legally implement cash discounts into your system. Fortunately, since Swiped powers us, we can help guide you through the process.

At, We’re Leaders in Our Industry, and We Want You to Enjoy the Benefits and Advantages of a Cash Discount Program