One program, two receipts
The owner sets one posted price. That’s what card customers pay, whether credit or debit. A customer who pays cash gets 3.5% off, and the discount shows on their receipt.
Why it’s allowed. Federal law says card issuers can’t stop a seller from offering a discount for cash, as long as it’s offered to everyone and disclosed clearly. Visa’s own rules say a merchant “is permitted to offer discounts for paying in cash.”
Why the details matter. Visa also says a merchant “must not add any amount over the advertised or normal price” for a card. So the price on the shelf, the menu and the website must be the card price. A program that posts the cash price and adds a fee at the register isn’t a cash discount. It’s a surcharge, and surcharges can never be applied to debit cards.
Sales tax left off to keep the example simple. The card receipt has no extra line. The cash receipt shows the discount.
Who pays, said straight
Owners ask this first. Most raise their posted prices about 3.6% when they start, so a cash customer pays exactly what they paid before and a card customer pays the posted price. The processing bill that used to come out of the owner’s pocket stops. The owner always sets the prices. You show the math.
To keep the cash price the same, divide today’s price by 0.965. That’s a 3.63% increase, slightly more than 3.5%.
| Today’s price | New posted price | Cash price |
|---|---|---|
| $4.99 | $5.17 | $4.99 |
| $10.00 | $10.36 | $10.00 |
| $25.00 | $25.91 | $25.00 |
| $100.00 | $103.63 | $100.00 |
Rounding. Some owners round to tidy prices, like $10.39 or a flat 4%. That’s their choice, but it means cash customers pay a few cents more than before. Say so plainly.
Sales tax in Georgia. Georgia’s Department of Revenue says a cash discount the seller gives isn’t part of the sales price, so tax is figured on the discounted price for cash sales and on the posted price for card sales. Have the owner confirm with their accountant.
Tips. The discount applies to what’s being sold. Tips are the customer’s choice and aren’t discounted.
Five fears, five honest answers
Don’t oversell. Owners trust the agent who admits the trade-offs.
“Some may ask about it. The surveys you hear about are on surcharges, where a fee shows up at the register. In one 2023 survey, 92% of people said what they want is to know the price up front. With this program the price they see is the price they pay, and cash gets a break.”
Be straight that there’s no good data yet on customers lost to a properly posted cash discount, and that a few regulars will ask.
“More do than you’d think. A 2026 J.D. Power study found 35% of small businesses already add a surcharge to credit cards. You’d be doing the customer-friendly version: no added fee, and a discount for cash.”
“Yes. Federal law protects discounts for cash, and Georgia allows them as long as the discount is open to every customer and the prices you advertise are the prices you charge. That’s exactly how we set it up.”
“It’s one changeover. You reprice once, the signs go up once, and your staff learns one sentence. We set up the system, and I’ll be here on day one.”
“Card prices do go up about 3.6%, and it’s better to say so than to hide it. Cash customers keep today’s price. Most owners tell regulars exactly that.”
A realistic expectation to share: in a Federal Reserve Bank of Boston study, customers who preferred cards had about a 12% chance of switching to cash when a cash discount was offered. Most people keep paying by card, so card sales usually dip a little, not a lot.
Help the owner roll it out right
A clean start is what keeps customers calm and keeps the program on the right side of the rules.
- BEFORE DAY ONE
Reprice everything customers see
- Menus, shelf tags, price lists and the register all show the card price.
- So do the website, online ordering, Google listing and delivery apps. Old prices online are the most common mistake.
- Pick a clean start date, like the first of the month.
- DAY ONE
Signs, staff and a test
- Signs at the entrance and at every register.
- Every employee learns the one sentence.
- Run a card sale, a debit sale and a cash sale. The card receipts show no added line; the cash receipt shows the discount.
- DAYS 2–30
Listen and check back
- Call at 7 days: any customer questions, any staff slip-ups?
- Visit at 30 days: signs still up, wording still right, receipts still correct.
- Ask the owner for a one-line quote and two referrals.
The sign
Use the signage we provide. Never write your own.