How a cash discount works.
Every tag shows two prices, cash and card. Cash pays the cash price; card pays the card price, 3.75% higher, and that difference pays for card processing.
One sale, worked through.
Say an item is $50.00 today. Its tag shows two prices: $50.00 cash and $51.88 card, 3.75% more.
- Cash customer pays $50.00. You keep $50.00, same as today.
- Card customer pays $51.88. The extra $1.88 pays the card processing, so you keep the full $50.00.
Today, a $50.00 card sale leaves you about $48.55 after Square’s 2.6% + 15¢.
Card pays $51.88, $1.88 more. That difference pays the card fees, so you keep the full $50.00 either way.
Both prices on the tag. Never a fee at the register.
Cash discount, both prices posted (what we set up)
The tag shows the cash price and the card price, the same size, before the customer pays. The register charges the price for how they pay. New York’s law calls this two-tier pricing and allows it.
A fee added at checkout (what we don’t)
Posting only the cash price and adding a “non-cash adjustment” or “service fee” at the register. Card networks treat that as a surcharge: banned in some states, never allowed on debit, capped at 3%. We don’t set it up that way.
Signs, receipts and your state’s rules.
Signs
One at the entrance and one at the register explaining the two prices. We send them, worded for your state.
Receipts
The receipt shows the price paid for the way the customer paid. New York requires the card price to be posted before the sale. Your tags do that.
Debit cards
Debit and credit both pay the card price on the tag, never an extra fee.
EBT
EBT shoppers pay the cash price.
Check your state’s rules. Card networks and states set rules for showing two prices, and some states restrict or ban card surcharges. Before you start, check the laws for your state and city (laws by state). We’ll help you word your tags and signs, but this is general information, not legal advice.
What you pay, and what can still cost money.
| Item | What you pay | Notes |
|---|---|---|
| Monthly service fee | $0 | We pay it, about $20 to $30 a month |
| Terminal | $0 | Any of our eight models. Yours to keep, even if you leave |
| Card processing | Paid by the card price | The card price is 3.75% higher and that difference pays the processing. Every rate is in your agreement before you sign |
| Sign-up and setup | $0 | Paymantis covers it |
| Contract | Standard merchant agreement | Length and any cancellation fee in writing before you sign |
| Chargebacks | A fee per dispute | Only when a customer disputes a card sale |