FAQs

Frequently Asked Questions

No, offering a discount to customers who choose to pay with cash is a completely different situation than adding a surcharging, convenience fee when it comes to the card brands’ regulations. Surcharging Credit Cards: Surcharging is allowed under specific situations determined by the card associations but it is not common. Surcharging is adding a penalty fee only to customers who use a credit card and is illegal in ten states .Advantages of Cash Discount: Conversely, a merchant is always allowed to give their customers a discount on their products and services as they see fit. Cash discounting is just the business owner exercising this given right and is legal in all 50 states.
Our cash discount program meets all major credit card brands, state and federal standard regulations. The transaction fee, whether it be a flat per transaction fee or a percentage fee, are applied to all products and payment types. This is required to be compliant with regulations. For standard, product pricing a small service fee (similar to automatic service gratuity at a restaurant) is added to all sales. This is true, no matter the payment type (checks, cash, credit cards, debit cards, etc.) The Durbin Amendment states that merchants are free to offer a discount and to encourage customers to pay via methods that are not a card. If a customer does pay their transaction with cash, then the discount is automatically applied at the time of sale and will show as a new line on their receipt.Several new credit card industry rulings went into effect as of January 27, 2013. This was the result of a federal class action litigation settlement against Visa and MasterCard. The settlement required that these two large credit card companies allow merchants who accept their cards as payment “to offer discounts to customers who pay with cash.
The fee method is chosen based on your average transaction size. If your business has an average transaction size under $15, you will most likely be setup on a flat dollar amount, per transaction fee. If your business For those with a larger than $15 average ticket, a transaction fee of 3.99% works best. By using your average transaction size, we are able to cover as much of your processing costs as possible.