A cash discount program is a way for merchants to pass the cost of card acceptance along to cardholders. The merchant will raise all of their prices via simple signage in their location, and then offer a discount to customers paying with cash.
Pay it Forward Processing does not endorse cash discount programs and here is why:
Eleven states are getting wise and making it illegal to participate in cash discount programs. California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas—and Puerto Rico have laws that prohibit merchants from charging consumers with surcharges on credit card transactions. Minnesota prohibits a seller of goods or services that establishes and is responsible for its own customer credit card from imposing a surcharge on a purchaser who elects to use that credit card in lieu of payment by cash, check, or similar means.
The PFP teams thinks the number of states deeming this illegal is going to continue to grow. In our professional opinion, all merchants should stay away from these types of programs and encourage their customers to come back to a no surcharge environment-like free lollipops or a give back program like Every Swipe Benefits Charity!