Cash Discount vs Surcharge Programs

The benefits from the two programs are similar; merchants pay less for card processing because they are able to pass along the cost to their non-cash paying customers (one through a credit card fee, and the other through a true price increase storewide). The difference is that cash discount programs fall outside the surcharge rules and provide a discount for cash payments, as defined by the card associations. By giving a discount from the regular standard price. See a comparison below.

Cash Discounting vs. Surcharging

Category	Cash Discounting	Surcharging
State Limitations	None, merchants in all 50 states can implement the program.	Limited to 47 states.
Visa/MC Registration	None.	Merchants adding a surcharge must register with Visa/MC.
Debit	PIN debit is simply disabled	All types of debit cards are prohibited from incurring a surcharge.
Software Support	Specialized software must be written for terminals, gateways, and POS to support it.	Specialized software must be written for terminals, gateways, and POS to support it.
Merchant Types	Card present or card not present (eCommerce) merchants.	Card present or card not present (eCommerce) merchants.

How do I get started?

The Cash Discount program is currently offered on the First Data Omaha platform on a PAX or Dejavoo terminals.

• We have three programs set at $25, $50, & $100 a month.

• Please remember that the merchant must use a PAX or Dejavoo terminal for this program.

• All debit transactions will be processed as online or offline debit. PIN debit setup is not necessary.

• Per occurrence fees still apply. (AVS, Chargebacks, returns, etc).