Is a cash discount legal in Minnesota?
Short answer: Minnesota caps credit card surcharges at 5% (card networks cap them lower) and requires a sign plus telling the customer at the sale. A cash discount with both prices posted before payment is not a surcharge under Visa’s rules, and federal law protects discounts for cash. Minnesota law says a discount offered to all customers and clearly disclosed is not a surcharge.
Minnesota at a glance.
Surcharges limited
- Surcharges
- In person: tell the customer orally at the sale and post a conspicuous sign. Online: notice during the sale, on the order summary or checkout page. Phone: oral notice. No surcharge on the seller's own store card. Price transparency law (325D.44): the AG says an avoidable card surcharge need not be in the advertised price, but must be if the business takes only cards.
- Cap
- 5% of the purchase price (network caps are lower).
- Debit cards
- Statute covers 'credit or charge card' only. Network rules bar debit surcharges.
- Cash discount with both prices
- A discount offered to all customers and clearly and conspicuously disclosed is not a surcharge (325G.051 subd. 1).
- Law
- Minn. Stat. 325G.051; Minn. Stat. 325D.44
Verified on primary source (Minnesota Revisor; AG price transparency FAQ).
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 Minnesota: 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 Minnesota charge a fee for using a credit card?
Only within limits. 5% of the purchase price (network caps are lower). In person: tell the customer orally at the sale and post a conspicuous sign. Online: notice during the sale, on the order summary or checkout page. Phone: oral notice. No surcharge on the seller's own store card. Price transparency law (325D.44): the AG says an avoidable card surcharge need not be in the advertised price, but must be if the business takes only cards.
Can I charge more for debit cards in Minnesota?
Not as a fee. Statute covers 'credit or charge card' only. Network rules bar debit surcharges. With a cash discount, debit pays the posted card price.
Is a cash discount legal in Minnesota?
A discount offered to all customers and clearly and conspicuously disclosed is not a surcharge (325G.051 subd. 1). 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.