Cash Discount Programs vs. Credit Card Surcharges: What’s the Difference?
Introduction
Cash discounts and credit card surcharges may seem similar, but they’re not the same. Let’s dive into what sets them apart and which might be a better fit for your business.
Key Differences
- Cash Discounts: Offer a lower price for paying with cash. Completely legal in all states and doesn’t require additional notifications to card networks.
- Surcharges: Add an extra fee to card payments, which can be illegal in some states and often requires prior notification.
While both programs help offset processing fees, cash discounts are generally seen as more customer friendly. People are more likely to respond positively to a discount than an extra charge, so cash discount programs can often lead to a better customer experience.
