Implementing a Cash Discount Program

As credit card processing becomes increasingly costly for merchants, many are seeking ways to reduce this expense.

What is a Cash Discount Program and How Does it Work?

A cash discount program allows you to provide customers an option to pay less for their recurring or subscription payment.

With a Cash Discount Program, you increase or quote your pay-by-credit card price up to 3.99% higher and offer the same percentage discount to customers willing to pay by cash, check or ACH.  When a customer pays with their credit card, our technology recognizes the percentage of the sale that is processing fees and peels it away automatically, so it never hits your books.

Many types of businesses are signing up for our Cash Discount Program because of the benefits, including:

  • No credit card processing fees. Just one monthly processing fee. You’ll have a constant view of profit margins and better budgeting!
  • Reduced risk of pricing disputes, fraud, and chargebacks.
  • Attracting bargain hunters by giving your customers incentive to pay cash.
  • Minimal to no impact to existing subscription management applications.
  • Minimal to no development work required for managing subscription and recurring payments.

What’s the Difference Between Cash Discount vs. Surcharge?

In terms of legality and compliance, a cash discount program, if properly implemented, is different from a surcharge and therefore not bound by the sale rules and requirements. A cash discount is when you post credit card prices and offer a discount on that price for customers who pay with cash.

A surcharge is when you post cash prices and charge an additional fee on top of that price for customers who pay with a card. Card brand rules state that a merchant can provide a lower price for cash acceptance.

Discounts for cash are allowed, however, merchants are not permitted to post a price for cash, and then charge a higher price for cards, unless both options are clearly presented to cardholders like what you see at many gas stations.


Will a cash discount eliminate the monthly processing fees? Yes! Every penny counts and credit card processing solutions that don’t cut into already razor-thin margins are more critical than ever for businesses. If you’re looking to forego the costs of payment processing, a cash discount program might be for you. To find out how it would work for your business, contact us today!


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