Is a Cash Discount Program Legal? Here’s What You Need to Know
Introduction
One of the first questions business owners have about cash discount programs is whether they’re legal. The good news is, yes, they are legal in all 50 states! Let’s look at what makes cash discounting different from other programs and why it’s perfectly above board.
Why Cash Discounts Are Legal
The Durbin Amendment protects cash discounts, allowing businesses to offer lower prices for cash payments without breaking the law. However, it’s important to follow a few guidelines:
- Proper Signage: Clearly display signs about the cash discount program.
- Accurate Processing: Ensure your POS system handles the discount correctly for full transparency.
Because they’re legal nationwide and straightforward to implement, cash discount programs are a safe way to offset processing fees without any legal hassle.
