Is a cash discount legal in New Jersey?
Short answer: New Jersey limits credit card surcharges to the seller’s actual processing cost and requires the amount to be posted at the entrance and the point of sale (on the menu for restaurants). A cash discount with both prices posted before payment is not a surcharge under Visa’s rules, and federal law protects discounts for cash.
New Jersey at a glance.
Surcharges limited
- Surcharges
- Disclose the amount (a percentage is fine) before any charge. Non-restaurants: sign at point of entry and point of sale. Restaurants: sign in the customer service area and on the menu (including menu boards, online and QR menus). Online or kiosk: on the checkout page. Phone: verbal notice. A sign saying only that a surcharge applies is not enough. Bill S595 (2026) would ban surcharges; pending.
- Cap
- Not more than the seller's actual cost to process the credit card payment. A flat rate is allowed if it does not exceed cost.
- Debit cards
- The law covers credit cards only; it does not address debit or gift cards. Network rules bar debit surcharges.
- Cash discount with both prices
- Not addressed. NJ DCA: all fees must be clearly disclosed at or near the point of sale before the transaction.
- Law
- N.J.S.A. 56:8-156.1 and 56:8-156.2 (P.L. 2023, c.146)
Verified on primary sources (enacted law on NJ Legislature site; DCA FAQ revised 6 Mar 2026).
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 New Jersey: 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 New Jersey charge a fee for using a credit card?
Only within limits. Not more than the seller's actual cost to process the credit card payment. A flat rate is allowed if it does not exceed cost. Disclose the amount (a percentage is fine) before any charge. Non-restaurants: sign at point of entry and point of sale. Restaurants: sign in the customer service area and on the menu (including menu boards, online and QR menus). Online or kiosk: on the checkout page. Phone: verbal notice. A sign saying only that a surcharge applies is not enough. Bill S595 (2026) would ban surcharges; pending.
Can I charge more for debit cards in New Jersey?
Not as a fee. The law covers credit cards only; it does not address debit or gift cards. Network rules bar debit surcharges. With a cash discount, debit pays the posted card price.
Is a cash discount legal in New Jersey?
Not addressed. NJ DCA: all fees must be clearly disclosed at or near the point of sale before the transaction. 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.