Is a cash discount legal in Maine?
Short answer: Maine 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.
Maine at a glance.
Surcharges banned
- Surcharges
- A seller may not impose a surcharge on a cardholder who uses a credit or debit card. A surcharge is any increase of the regular price not imposed on cash or check payers.
- Cap
- Not applicable (governmental entities excepted, up to cost).
- Debit cards
- Banned (statute covers credit and debit).
- Cash discount with both prices
- 'A discount or reduction from the regular price is not a surcharge.' Safest form: the posted regular price is the card price.
- Law
- 9-A M.R.S. 8-509
Verified on primary source (Maine Legislature).
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 Maine: 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 Maine charge a fee for using a credit card?
Maine’s law bans credit card surcharges. A seller may not impose a surcharge on a cardholder who uses a credit or debit card. A surcharge is any increase of the regular price not imposed on cash or check payers.
Can I charge more for debit cards in Maine?
Not as a fee. Banned (statute covers credit and debit). With a cash discount, debit pays the posted card price.
Is a cash discount legal in Maine?
'A discount or reduction from the regular price is not a surcharge.' Safest form: the posted regular price is the card price. 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.