Cash Discount Pricing

What is Cash Discount Pricing?

Cash Discount Pricing allows an incentive that a merchant offers to their buyers to pay with cash. Offering merchants Cash Discount Pricing allows them to pass along their credit card processing costs to their customers. This effectively eliminates a merchant’s credit card expense except for a manageable monthly fee of $30.

Currently available in US only.

How does the Cash Program Actually work?

There’s not much you have to do different other than putting up the right signage to give notice to your customers that you are introducing a cash discount payment policy. Our special software seamlessly adds the non-cash fee at the time of purchase directly through our zero fee terminals. If a customer’s decides to use a credit card for their purchased then the additional non cash discount fee will be added directly to the transaction and reflect that on the receipt.  Let’s take a sample transaction:

  • A customer purchase’s an item for $20 and decides to use cash. 
  • You do nothing and accept the cash like normal.
  • Now if the customer decides they want to use a credit card for a $20 purchase.
  • At the time of sale you would swipe their card and the credit card terminal would add an additional 3.85%  (you can choose to higher that up to 4% if you wish) to the total which would be $20.77.  
  • Fees are collected daily to completely offset all your processing costs. 

What Merchant would like this?

This is NOT for all merchants.  Some might worry about angering or driving customers away.  Cash Discount Pricing tends to be most appealing to small ticket merchants, whose customers would incur a relatively small charge for using the cash or paying Cash.


  • Do not refer Cash Discounting to a “Surcharge” to customers.  While this is effectively the same thing, surcharging is still considered illegal in several states.  Cash Discounting Pricing is not illegal in ANY state.  The merchant is effectively charging 4% less if their customers pay with cash instead of using a credit card.
  • If the merchant want to charge something other than 4%, this information needs to be forwarded so the right amount needs to be collected from the merchant to fully offset what they are charging their customers.
  • Do you want more cash payments? – A cash discount will lead to more cash purchases which are a good thing if you want to reduce the impact of processing fees. However, one thing to keep in mind is that customers that use credit cards tend to spend more money. And that’s it!
  • Please do not hesitate to contact us with questions.  Speak to your support team for any concerns.

How do you do it?

Setting up a merchant is with Cash Discount Pricing is relatively easy.  They need to sign up and broad in a very specific manner.

  • Price the merchant with a flat rate for all cards at 3.85%, plus $30.00 as a monthly fee.
  • The merchant must post a flyer in several places prominently throughout their business, and particular at the checkout counter.  Noting their credit card customers will be paying 4% above the Cash Discount Price.
  • Set up merchant for daily discount so they don’t get hit with a big bill at the end of the month.
  • You must use a Clover Mini or Clover Station to do this.  In Clover settings there is a “Service Charge” feature that needs to be enabled.  This needs to be set at 4%.

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