The Cash Discount Program is growing in popularity. This is a program designed to incorporate the processing fee into the sales price. At checkout the merchant provides a discount to pay with cash, this is done with programed software at the point of sale. The Merchant will no longer pay the fees. There are rules with this program and they vary state by state. Cash Discount programs are legal in all fifty states per the Durbin Amendment (part of the 2010 Dodd-Frank Law), which states that businesses are permitted to offer a discount to customers as an incentive for paying with cash. Merchants must post the correct signage at the door of their business as well as by the check out counter. The receipt must clearly show the service fee as a separate line item as well. The business must also register with Visa and Mastercard for this program. Power Processing will provide all of the above. We register you, we give you options for signage and train you and your staff on the proper way to execute this great program. We provide the equipment and technology to be complaint with the major card brands.
Many business owners will ask “Why can’t I apply my own fee? Why do I have to switch companies?” Visa and Mastercard make it very clear that a merchant cannot profit off of interchange fees. If you charge more then the cost of acceptance then you are not complaint and there could be hefty fines and penalties. In some cases, a merchant can be shut down by Visa and Mastercard ad put on the TMF list which is a list for merchants forbidden to accept credit cards. Being complaint is the most important part of cash discount program. Power Processing is experts and will advise the proper way to use this great program.