Cash Discount Break-Even Calculator
Enter your monthly revenue, current card mix, and effective rate to model what a cash discount program would cost — and see how many customers need to switch to cash before the program pays for itself.
Calculator
All revenue regardless of payment type
Card % is derived automatically (80% card)
Total card fees ÷ card volume × 100
% of current card volume expected to switch to cash after program launch
Example: after program launch, merchant pays 0.25% on remaining card volume. Actual program cost varies. Results are estimates only.
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How the break-even for cash discounting works
With a cash discount program, card customers pay the standard price (which includes a built-in margin to cover your processing cost) and cash customers pay a discounted price. The merchant still pays program fees on card transactions, and the calculator uses 0.25% as an example. Actual program cost varies.
In the example, a 2%–3% effective rate is replaced with a 0.25% program cost, so the estimate shows savings even if zero customers switch to cash. The "break-even" question most business owners actually want to answer is: how many card customers could leave entirely (not switch to cash, but stop buying) before the lost revenue exceeds the processing savings? That threshold is different for every business and depends on your margin. The calculator above shows the savings at your current card mix so you can evaluate the program independently of customer behavior assumptions.
Unlike surcharging, which applies only to credit cards, cash discounting can also cover debit transactions. Rules vary by state and card network, and GoPayhawk confirms requirements during setup. Learn more on the cash discounting pricing page or request a free statement analysis to see your exact numbers.
Cash Discounting FAQ
A cash discount program displays two prices: a standard price for card customers and a lower cash price. Card customers pay the standard price, which covers your processing cost. Cash customers pay the discounted price. The program is framed as a discount for cash rather than a fee for cards.
Yes. Rules vary by state and card network, and GoPayhawk confirms requirements during setup. GoPayhawk provides signage as part of setup.
As an example, this calculator assumes the merchant pays 0.25% of remaining card volume for program fees. Actual cost varies. At a 2.75% effective rate, that example is a reduction of roughly 2.5 percentage points, and savings increase as more customers pay cash.
Acceptance varies by industry. Gas stations are a familiar example of a separate cash price. Card customers pay the posted price, and results vary by business.
Yes. Cash discounting can also cover debit transactions, and your terminal is configured to handle PIN debit and signature debit based on how each card is processed.
A typical program shows the cash price and the card price at the point of entry and point of sale, framed as a discount for cash. GoPayhawk provides signage templates as part of program setup. Rules vary by state and card network, and GoPayhawk confirms requirements during setup.
No. Surcharging adds a fee on top of a base price for card customers. Cash discounting shows a higher standard price and offers a lower price for cash. Rules vary by state and card network, and GoPayhawk confirms requirements during setup.
In most cases yes, but your terminal and gateway must be configured to display dual pricing correctly. GoPayhawk handles terminal programming and gateway configuration as part of the setup. Most existing GoPayhawk terminals can be updated remotely.
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