How to Launch a Cash-Discount Program (Step by Step, 2026)
A cash-discount (dual-price) program is legal in every state and is the lowest-risk way to recover processing cost. Here is the launch sequence.
Last verified: 2026-09 · Educational reference, not legal advice
You post a higher “card price” and a lower “cash price” for the same good or service. The difference offsets your swipe fee. No percentage cap or 30-day notice is required, but both prices must be displayed clearly.
Two prices, one menu
The card price equals the cash price plus the fee offset. Customers who pay cash get the lower price; card customers effectively cover the processing cost. This is not a surcharge percentage and does not require the network notice.
- Decide the margin buffer you need.
- Set card price = cash price + fee offset.
- Update menus, tags, and your site to show both prices.
- Train staff to charge the cash price when paid cash.
- Configure the POS to apply correctly; monitor.
Do not advertise one price and silently charge another — both prices must be visibly posted. A clearly posted dual price satisfies price-posting rules (for example California’s SB 478).
Compare the two models.Cash discount vs surcharge →
Related guides
Frequently asked questions
No — the card-network 30-day surcharge notice applies to surcharges, not to a dual-price cash-discount program.
Yes — posting a lower cash price and a higher card price is permitted everywhere, including CT, MA, and PR where surcharging is banned.
Enough to offset your processing cost on card sales (commonly about 3–4% of the item), while keeping the card price competitive.
Educational content, not legal advice. Cashbizly is an independent educational resource. Nothing here is personalized legal advice and it does not replace a licensed attorney or your state’s Attorney General.
Our state-by-state status reflects the consensus of published 2025–2026 compliance guides (card-network rules, LawPay, Stax, NCSL) as of the “last verified” date on each page. Surcharge law changes frequently and is actively litigated — always confirm current figures with your state Attorney General or a professional. Read our full disclaimer.