Is a cash discount legal in Colorado?
Short answer: Colorado caps credit card surcharges at 2% (or the merchant discount fee), requires a posted sign and a separate receipt line, and bans surcharges on debit cards. A cash discount with both prices posted before payment is not a surcharge under Visa’s rules, and federal law protects discounts for cash. Colorado law expressly allows a discount for paying cash if it’s offered to everyone and clearly disclosed.
Colorado at a glance.
Surcharges limited
- Surcharges
- Statutory sign wording must be posted; the surcharge must be a separate line on the receipt; one surcharge per transaction. From 1 Jan 2026 HB25-1090 (C.R.S. 6-1-737) requires total-price advertising of fees that are not reasonably avoidable.
- Cap
- 2% of the total cost, or the merchant discount fee for the transaction (statute gives both methods).
- Debit cards
- Banned on debit cards (PIN or not), cash, checks and gift cards (5-2-212(1)(f)).
- Cash discount with both prices
- A discount to induce cash or check payment is allowed if offered to all buyers and clearly disclosed (5-2-212(2)).
- Law
- C.R.S. 5-2-212; C.R.S. 6-1-737
Verified on statute text (public.law copy of C.R.S.); HB25-1090 effect on card fees not tested.
What to post on your tags.
- Show the cash price and the card price on every tag, menu or price list, the same size.
- Charge the posted price for how the customer pays. Don’t add a fee, “service charge” or “non-cash adjustment” at the register.
- Put a sign at the door and the counter explaining the two prices.
- Debit pays the posted card price. Never add a fee to debit.
Paymantis sets up cash discount processing for independent shops in Colorado: free sign-up, free monthly service and a free terminal, with tags and signs worded for your state. Get started free.
Questions owners ask.
Can a business in Colorado charge a fee for using a credit card?
Only within limits. 2% of the total cost, or the merchant discount fee for the transaction (statute gives both methods). Statutory sign wording must be posted; the surcharge must be a separate line on the receipt; one surcharge per transaction. From 1 Jan 2026 HB25-1090 (C.R.S. 6-1-737) requires total-price advertising of fees that are not reasonably avoidable.
Can I charge more for debit cards in Colorado?
Not as a fee. Banned on debit cards (PIN or not), cash, checks and gift cards (5-2-212(1)(f)). With a cash discount, debit pays the posted card price.
Is a cash discount legal in Colorado?
A discount to induce cash or check payment is allowed if offered to all buyers and clearly disclosed (5-2-212(2)). Post both prices before the customer pays and add nothing at the register.
Sources
General information, not legal advice. Rules change and differ by state and city; check the rules where your business is. See our terms and disclaimers.