Merchant guides
Cash discount and dual pricing: let customers cover the card fee.
With a cash discount or dual pricing program, the price your card customers pay covers the cost of processing, and customers paying cash get a discount. Instead of losing around 3% of every card sale to fees, most of that money stays with you.
What it saves, step by step.
- What you pay today$40,000 a month in card sales at a 3.1% effective rate: $40,000 × 0.031 = $1,240 in fees every month.
- Over a year$1,240 × 12 = $14,880 a year paid in card fees.
- With a cash discountYour card price covers the processing cost, so most of that $14,880 stays in your business instead of going to fees.
Your own numbers come from your statement. Upload last month’s and we’ll run them for you.
How it works.
- Cash discountYour posted price is the card price. Customers who pay cash get a discount at checkout.
- Dual pricingBoth prices are shown, a cash price and a card price, on your shelf tags, menu or screen.
- DisclosureClear signs at the entrance and register, and both prices on the receipt. The exact rules depend on your state and card brands.
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FAQ
Common questions
Is a cash discount legal?
Federal law lets merchants offer a discount for paying with cash. Surcharges, a fee added on top for paying by card, are restricted in some states and by card network rules. Because the rules depend on your state, your card brands and how prices are shown, we set the program up and the disclosures with you.
What's the difference between a cash discount and a surcharge?
With a cash discount, your posted price is the card price and cash customers pay less. With a surcharge, a fee is added at checkout when someone pays by card. They're treated differently under card network rules and state law.
Will customers mind?
Most don't. Gas stations have shown a cash price and a card price for years. Clear signs at the door and the register, and both prices on the receipt, keep it simple.
Does it work with my POS?
It needs a terminal or POS that supports it. We set it up on KORONA POS and the terminals we place, and check whether your current system can do it.
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