Is the Cash Discount Program Right For Your Business?


How would you like to eliminate your credit card processing fees entirely? Sound too good to be true? It’s not! The cash discount program allows you to avoid processing fees and more and more businesses are utilizing this new program as a way to cut their expenses and increase their margins. Read on to learn more about whether cash discount is right for your business.

What is it?

The cash discount program is a simple way to avoid credit card processing fees by passing your fees onto your customers. While gas stations have made use of this program for years, it only recently became available to other business types.

How Does it Work?

A small fee (typically 2-4%) will be added to all customer transactions. The fee is removed for customers who pay with cash. At the end of the day, the charges are collected and used to cover your processing fees.

How Is this Different from a Surcharge?

This may sound similar to a credit card surcharge, but there are some important distinctions. Surcharges cannot be applied to debit transactions, but under the cash discount program, every transaction that is not paid in cash (or in-store gift card) will include the extra fee.

Is This Legal?

Credit card surcharges are currently prohibited in 11 states: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma, Texas, and Puerto Rico. Thanks to the Durbin amendment of the Dodd-Frank Law, passed in 2010, the cash discount program is legal in all 50 states.

You just have to follow a few simple rules in order to stay compliant: the charge must be visible on the customer’s receipt, signs must be displayed in your store explaining the fee, and you must ask the customer at check out if they would like to receive a discount by paying with cash.

What Are the Advantages of the Cash Discount Program?

Here are just a few reasons to choose the cash discount program:

  • Save with every transaction! You’ll no longer have to pay a fee every time the customer swipes their credit card. This adds up to big savings by the end of each month. With fewer fees overall, you’ll enjoy higher profits.
  • It works with your business! Many gas stations already take advantage of the cash discount program and others can benefit greatly from it. It’s perfect for many businesses, especially those that process small-ticket transactions.
  • It’s flexible! You have the option of removing the fee for the customer if they are upset by the charge. You can also return to more traditional pricing at any time if you find your customers are unhappy with the system.


What Can Merchant Service Group LLC Do for You?

The cash discount program has been growing in popularity and Merchant Service Group has helped many businesses switch their accounts to this business-friendly system, including nail salons, restaurants, donut shops, coffee shops, minimarkets, retail stores, and more!

We provide support with every step of this transition, whether it’s helping you understand the program itself, setting up your equipment to use with the cash discount program, or providing signage to display in your store that explains the program to your customers.

For more information, please email us at

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Is the Cash Discount Program Right For Your Business?