Cash discounting and surcharging both deal with the cost of taking cards, but they are not the same thing and shouldn't be treated that way.
| Cash discounting | Surcharging | |
|---|---|---|
| How it works | One posted price with a discount for paying cash, or a clearly shown cash price and card price | An extra fee added on top of the posted price when someone pays by card |
| What the customer sees | A cash price and a card price | The base price plus a separate card fee |
| Rules to know | Setup and disclosure rules depend on your program | Network registration, notice rules, fee caps and state rules may apply |
| Card type limits | Depends on your setup | Often different for credit vs. debit |
| On the receipt | Depends on your program | The fee is usually shown as its own line |
Why this matters
Since the two programs follow different rules, saying you run one while actually running the other can get you in trouble. Pick one on purpose, set up your payment system to match it, and describe it accurately to customers.
What to do
- Write down which program you're running
- Make sure your POS matches what you documented
- Keep pricing consistent across signage, menus, receipts and online checkout
- Double-check your setup any time you change processors, devices or locations
Educational content
This article is for education only and is not legal, tax, or accounting advice. Program availability, disclosure rules, and allowed structures vary by state, card network rules, processor requirements, and how your business is set up. Talk to your own advisors before you adopt a program.