The Nation’s #1 Cash Discounting & Surcharging Platform.
Cash Discounting & Surcharging States
Is Cash Discounting & Surcharging Legal?
The Payment Card Interchange Fee & Merchant Discount Antitrust Litigation as well as the passing of laws such as The Dodd Frank Wall Street Reform, The Consumer Protection Act, and The Durbin Amendment have given the power to merchants in all 50 states to implement Cash Discount programs in their brick and mortar locations as well as their online locations. Cash Discounting is now accepted nationwide.
Surcharging is rapidly gaining approval throughout the United States. Originally there were a total of 10 states that banned surcharging, in 2022 there are now only 4 states that do not allow surcharging. As of 2023, Connecticut, Maine, Massachusetts, and Oklahoma are the only states that still do not allow merchants to apply surcharging fees. Previously states such as Texas, Colorado, and New York banned surcharging, but these states found in favor of the merchants, taking their side in the battle against credit card processing fees.
How Does Cash Discounting
& Surcharging Work?
- The merchant enters the sales amount
- The terminal automatically calculates the service charge (maximum 4%) on credit card transactions
- The customer swipes / inserts their card
- The receipt clearly breaks down sales and service charge in both retail and restaurant locations including tip when necessary.
- The full sales amount goes directly to the merchant. No processing fees are deducted on credit card sales.
- Swipe4Free uses the service charge to cover interchange costs, authorization costs, transaction costs, and support.
Cash Discount Rules
- Merchant must display signage at the following:
- Merchant’s point of entry (in-store & online)
- Point of transaction (payment location & check out page)
- Charge to customer cannot exceed 4% and cannot be called a “Fee”
- Non-Cash Charge must be shown:
- Separately on the front of the receipt
- In same font & size as other wording on the transaction receipt
- Swipe4Free provides Signage Stickers to be placed at point of entry and register in-store and a disclaimer for online stores.
- Swipe4Free will never assess a charge greater than 4% on any credit card transaction even on sales under $10.00
- The Swipe4Free receipt clearly displays “Non-Cash Charge” separately and in the same size and font as other text on the receipt.
Why Choose Swipe4Free?
99% Approval Rate!