This is an ongoing series of articles about cash discounting and surcharging programs.
I recently returned from a conference and attended a session by Clearent to learn more about this hot topic in the payment world. The number one take away from this conference - you need to follow the rules very carefully - and work with a partner that knows what they are doing!
Below is Clearent's explanation of the different "types" of discounting/surcharging:
- True Cash Discounting – A true cash discount is when a business offers a discount to customers who pay by cash, check or store-branded gift card, instead of with a credit or debit card.
- Non-Cash Adjustment – Implementing a non-cash adjustment is another way business owners can offer a discount off of their listed, stated and advertised prices. Customers who pay with credit and debit cards do not receive the discount and will notice a non-cash adjustment on their receipt.
- Surcharging – Surcharging is when a business owner applies a fee to a customer who pays by credit. It’s important to note that surcharging is prohibited in six states and requires business owners to follow a few additional steps so they are in compliance with the card brands.
If you are interested in one of these programs for your business, contact us for more information: