Is a cash discount legal in Illinois?
Short answer: Illinois has no specific law on credit card surcharges, so card network rules apply: Visa caps surcharges at 3% or your cost and bans them on debit. A cash discount with both prices posted before payment is not a surcharge under Visa’s rules, and federal law protects discounts for cash.
Illinois at a glance.
No state surcharge law
- Surcharges
- No surcharge statute. The '1% cap' in some guides comes from HB 3128 (2021), which died. The Interchange Fee Prohibition Act is about interchange on tax and tips, not surcharges; it is partly enjoined and reported delayed to 1 July 2027.
- Cap
- No state cap. Card-network rules apply: Visa lesser of 3% or the merchant's discount rate; Mastercard lesser of cost or 4% (secondary).
- Debit cards
- No state rule. Visa and Mastercard bar surcharges on debit and prepaid cards.
- Cash discount with both prices
- No state rule found. Federal law protects cash discounts (15 U.S.C. 1666f, 1693o-2). Visa allows card and cash prices shown side by side.
- Law
- None found
Secondary only (bill history and industry guides).
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 Illinois: 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 Illinois charge a fee for using a credit card?
There’s no specific state law, so card network rules apply: surcharges are capped at 3% or your cost (Visa), must be disclosed, and need notice to your processor first.
Can I charge more for debit cards in Illinois?
Not as a fee. No state rule. Visa and Mastercard bar surcharges on debit and prepaid cards. With a cash discount, debit pays the posted card price.
Is a cash discount legal in Illinois?
No state rule found. Federal law protects cash discounts (15 U.S.C. 1666f, 1693o-2). Visa allows card and cash prices shown side by side. 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.