Cash discount is the oldest fee-offset program and the easiest to explain at a counter: your posted price is the card price, and customers who pay cash get a discount. Gas stations have run it for decades. Here's how to run it right — and the one mistake that gets programs flagged.
The economics
Your posted prices already account for the cost of card acceptance. When someone pays cash, you give back the card cost as a discount — usually 3–4%. Card payers pay the posted price; cash payers pay less; either way, your margin is whole. Processing cost lands at or near 0%.
The compliance line: discount OFF, never fee ON
This is the entire legal distinction. A cash discount takes money off the posted price for cash. The violation — sometimes sold as a "non-cash adjustment" — posts a low price and then adds a fee for cards at the register. That's a disguised surcharge, it breaks card-brand rules when run this way, and it's the #1 reason programs get shut down. If both of your prices aren't visible before checkout, you're doing it wrong.
Cash discount vs. dual pricing
Same economics, different presentation. Dual pricing shows both numbers side by side (strongest transparency, best for menus and shelf tags). Cash discount posts one price with a discount story (simplest signage, easiest to explain). Which fits depends on how your prices are displayed today — side-by-side comparison here.
What it costs to run
Programs are typically packaged with your processing: a monthly program fee in the tens of dollars, with the card cost covered by the posted-price structure. On a $40,000/month card volume at 2.8% effective, that's roughly $1,100/month of fees redirected — the program fee is noise by comparison. We quote the exact structure with your statement.
Ready to see your number? Free rate review, or explore all the programs on Zero Fee Programs.