Cash Discount Program Rules
Is Cash Discount legal?
If done the correct way, yes, Cash Discount Programs are legal and compliant.
Giving customers a cash discount or charging them the advertised price and adding a "service fee" to those who pay with a credit card is perfectly acceptable IF you follow the rules as implied by State and Federal laws.
The essential Cash Discount Program Rules being:
Correct Signage
Signage must be posted at the door and check-out.
Amount of the Added Service Fee
The amount of the added service fee must be clearly displayed on the receipt.
Offer the Cash Discount Verbally
You must offer your customers a cash discount verbally. Your posted prices are considered cash prices and the signage allows for a fee if the payment is not made with cash.
In order to be compliant, merchants with a Cash Discount Program need to display the Base Amount of the transaction, the Cash Discount, and the Total Cost of the transaction on the customers' receipt (see below)
