Is a cash discount legal in Connecticut?
Short answer: Connecticut bans credit card surcharges. A cash discount with both prices posted before payment is not a surcharge under Visa’s rules, and federal law protects discounts for cash.
Connecticut at a glance.
Surcharges banned
- Surcharges
- 'No person may impose a surcharge on any transaction' (as amended by Public Act 24-142, sec. 28). The Department of Consumer Protection says a receipt line such as 'non-cash adjustment', 'transaction fee' or 'processing fee' is a surcharge.
- Cap
- Not applicable: no surcharge on any transaction.
- Debit cards
- Covered by the general ban. Discounts for paying by debit card are allowed.
- Cash discount with both prices
- Allowed. DCP: show both cash and credit prices wherever prices are listed, or post signs stating the cash discount; online, show it in every price section and at checkout. The statute requires a posted notice of any discount.
- Law
- Conn. Gen. Stat. 42-133ff (as amended by P.A. 24-142)
Verified on primary agency source (CT DCP) and statute text via FindLaw; the legislature's own site was unreachable from here.
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 Connecticut: 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 Connecticut charge a fee for using a credit card?
Connecticut’s law bans credit card surcharges. 'No person may impose a surcharge on any transaction' (as amended by Public Act 24-142, sec. 28). The Department of Consumer Protection says a receipt line such as 'non-cash adjustment', 'transaction fee' or 'processing fee' is a surcharge.
Can I charge more for debit cards in Connecticut?
Not as a fee. Covered by the general ban. Discounts for paying by debit card are allowed. With a cash discount, debit pays the posted card price.
Is a cash discount legal in Connecticut?
Allowed. DCP: show both cash and credit prices wherever prices are listed, or post signs stating the cash discount; online, show it in every price section and at checkout. The statute requires a posted notice of any discount. 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.