Cash Discounting Program
A cash discount program lets you post one price that includes your card processing cost, then lower it for customers who pay with cash or PIN debit. Rules vary by state and card network, and GoPayhawk confirms requirements during setup. We also program your terminal, provide the signage, and format your receipts.
Post one price. Reward customers who skip the card.
A cash discount program posts a single standard price that includes your card processing cost, then gives a lower price to customers who pay with cash or PIN debit. Card customers pay the posted price; cash and PIN debit customers pay a discounted price. Unlike surcharging, no fee is ever added to a transaction. A discount is offered instead.
Unlike surcharging, cash discounting does not add a fee to the transaction. It reduces the price for a preferred payment method. This distinction shapes how the program is disclosed to customers.
Rules vary by state and card network, and GoPayhawk confirms requirements during setup.
See If Cash Discounting Fits Your BusinessRequirements Confirmed
Rules vary by state and card network, and GoPayhawk confirms requirements during setup.
Setup Handled
We program your terminal, provide the signage, and format your receipts.
PIN Debit Included
The cash discount can apply to PIN debit, and your terminal is configured to handle it.
Itemized Receipts
The receipt for each cash or PIN debit transaction shows the posted price and the amount discounted.
Four steps from setup to checkout
Set your posted price
You price your goods and services at a rate that includes your processing cost. This becomes the price all customers see on signage, menus, and at the point of sale.
Display program signage
Signage at the store entrance and at the point of sale tells customers that a cash discount is available and the discount amount or percentage.
Apply the discount at checkout
When a customer pays with cash or PIN debit, your terminal or POS system automatically applies the cash discount, reducing the transaction total. Card-paying customers pay the full posted price.
Discount shown on receipt
The receipt for cash or PIN debit transactions itemizes the cash discount, clearly showing the original posted price and the amount discounted.
Cash Discounting vs. Surcharging
Both programs offset card processing costs, but they work differently, and their rules vary by state and card network.
Cash Discounting
- Discount applies to cash AND PIN debit
- Posted price is the "card" price; cash customers pay less
- Framed as a reward, not a fee
Surcharging
- GoPayhawk handles card network notifications during setup
- Applies to credit cards, and debit cards are not surcharged
- Posted price is the "cash" price; card customers pay more
- Framed as an added fee
Not sure which program fits your business? Get a free statement analysis and we'll recommend the right fit.
What a cash discount program looks like day to day
Rules vary by state and card network, and GoPayhawk confirms requirements during setup. Here's how a typical program runs.
A Discount, Not a Fee
The posted price on your menu, shelf tag, or price list is the card price, and the cash customer gets a reduction from that price. No fee is added on top of a base price.
- Your signage and disclosures call it a cash discount
- Surcharging works the other way, posting a cash price and adding a card fee on top
- The discount is applied the same way across customers and products
Signage
Customers see the program before they start a transaction. A typical setup includes:
- Store entrance: A notice stating that a cash discount is available and the discount amount or percentage
- Point of sale: A POS notice or screen prompt disclosing the discount before the customer completes payment
- Online checkout (if applicable): A disclosure on the payment page stating the cash discount policy and that the posted price reflects the card price
GoPayhawk provides signage and POS screen configuration as part of program setup.
Receipts
For every cash or PIN debit transaction where a discount is applied, the customer receipt itemizes:
- The original posted (card) price of goods or services
- The cash discount amount applied
- The final amount charged after the discount
Your terminal or POS is configured to print this automatically.
PIN Debit vs. Signature Debit
The discount can extend to debit card transactions, and how it works depends on the debit type:
- PIN debit (routed debit): The discount can be applied. PIN debit is processed through debit networks (Interlink, Pulse, NYCE).
- Signature debit (runs as credit): Signature debit is processed on the Visa/Mastercard network and treated like a credit transaction, so the discount may not apply.
GoPayhawk configures your terminal to apply the discount based on how each card is processed.
PCI DSS
PCI DSS (Payment Card Industry Data Security Standard) is the industry security standard for how cardholder data is handled, stored, and transmitted. GoPayhawk operates on PCI-compliant processing infrastructure and provides guidance on completing your annual merchant compliance questionnaire.
- Use only PCI-certified terminals and payment devices
- Never store full card numbers, CVV codes, or magnetic stripe data
- Complete your annual SAQ (Self-Assessment Questionnaire) through your merchant portal
Common questions about cash discounting
Do cash discount rules vary by state?
Yes. Rules vary by state and card network, and GoPayhawk confirms requirements during setup. The program itself works the same way: you post one price and lower it for customers who pay with cash or PIN debit.
How is this different from surcharging?
The key distinction is framing and structure. With surcharging, you post a base (cash) price and add a fee when a customer pays by credit card. With cash discounting, you post a single price that reflects the card cost, and then reduce that price when a customer pays with cash or PIN debit. Rules vary by state and card network, and GoPayhawk confirms requirements during setup.
Can the cash discount apply to debit cards?
Yes, for PIN debit transactions. This is one of the main advantages cash discounting has over surcharging. When a customer inserts their debit card and enters their PIN, the transaction routes through a debit network, and the cash discount can be applied. Signature debit (where the customer selects "credit" or taps/swipes without a PIN) is treated differently and the discount may not apply. Your terminal is configured to handle this distinction automatically.
What signage does a cash discount program use?
A typical program posts a notice at the entrance and the point of sale, plus a disclosure on the payment page if you sell online. Rules vary by state and card network, and GoPayhawk confirms requirements and provides the signage during setup.
What shows on a cash discount receipt?
Your terminal or POS is set up to print the posted price, the cash discount applied, and the final amount charged. GoPayhawk confirms receipt requirements during setup.
What's the difference between cash discounting and dual pricing?
Cash discounting posts one price, the card price, and reduces it for cash or PIN debit. Dual pricing shows a lower cash price and a higher card price side by side before the customer pays. Rules vary by state and card network, and GoPayhawk confirms requirements during setup.
What does GoPayhawk handle for setup?
We handle everything: terminal programming, POS configuration, signage for your storefront and checkout area, receipt formatting, and ongoing support. We walk you through pricing your goods at the card rate and confirm state and card network requirements during setup.
Ready to reward cash customers and offset processing costs?
Send us your current processing statement and we'll show you how a cash discount program would work for your business.
