Cash Discount Program
Save on processing fees with our Cash Discount Program—designed to help businesses keep more of what they earn.
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Payment solutions
What is a Cash Discount Program?
Cash discount programs are a strategic pricing approach where businesses offer a discount to customers who pay with cash or another form of non-credit payment, such as a check or a debit card. The posted prices reflect the addition of the processing costs. So when someone pays using a credit card, the cost to process the transaction is already included. When a customer pays with cash, there are no processing fees that need to be paid, so the purchase is discounted.
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#1 Cash Discount App
The #1 Cash Discount app on the Clover Marketplace makes it easy for business owners to eliminate credit card processing fees while keeping checkout seamless for customers. With one simple setup, you can pass the cost of card acceptance back to customers who choose credit — while rewarding cash-paying customers with a built-in discount.
Get startedSick of Fees?
Now you can leverage our technology to virtually eliminate all of your credit card processing fees. With our Cash Discount Program you will not be charged a percentage rate or transaction fee on ANY card you take. In the example, VMS saved the business owner over $1,300 per month. Whatever your statement shows as total fees charged is the savings that you will see when you join our program.
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Cash Discount Program Calculator
Calculate your savings when offering cash discounts to customers
How We Calculate Your Savings
Our calculator estimates 3.5% monthly savings on your total credit card processing volume. This represents the typical net benefit businesses see when implementing a cash discount program.
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Reduce Chargeback Risks
Credit card chargebacks can be costly and time-consuming. By encouraging more cash payments, you naturally reduce the chances of disputes and added fees.
Get startedBoost Cash Flow with Every Transaction
Cash payments give you immediate access to funds—improving your daily liquidity and making it easier to manage business expenses.
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Attract Bargain Hunters
Offering a discount for cash creates a win-win: your customers feel like they scored a deal, and you avoid processing fees. It’s a powerful incentive for repeat business.
Get startedFrequently Asked Questions
A Cash Discount Program allows merchants to offer a lower price to customers who pay with cash, while customers paying by card cover the cost of processing fees. It’s a smart way to encourage cash payments and offset credit card processing costs—helping you keep more of your revenue without raising your prices across the board.
It’s simple. When a customer pays with cash, they receive an instant discount—paying less than the listed price. If they choose to pay with a credit or debit card, they pay the regular listed price, which already includes a small service fee to cover card processing costs.
This approach helps your business reduce or eliminate processing fees—without raising prices for cash-paying customers.
Yes, Cash Discount Programs are legal in all 50 states—as long as they’re implemented correctly. To stay compliant, merchants must follow federal and state guidelines, including clear signage that explains the cash discount and any service fees for card payments. Velocity Merchant Services ensures your program is set up properly, so you can stay compliant and maximize savings.
A cash discount lowers the price for customers who pay with cash. A surcharge, on the other hand, adds a fee to the total when a customer pays with a credit card.
While cash discount programs are legal in all 50 states, surcharging is more heavily regulated and may be restricted or prohibited in certain states. That’s why many businesses choose the Cash Discount Program—it’s a simpler, fully compliant way to offset processing fees without legal complications.
The Cash Discount Program offers several valuable advantages for your business:
- Eliminates or significantly reduces credit card processing fees
- Encourages cash payments, improving day-to-day cash flow
- Boosts profit margins by lowering your cost of doing business
- Promotes transparent pricing with no hidden fees for your customers
- It’s a simple way to take control of your payment costs while keeping your pricing fair and compliant.
Yes, clear communication is essential. To stay compliant and maintain trust, you must display proper signage at your entrance and point of sale. This signage should clearly explain that card transactions include a small service fee, and that a discount is offered for cash payments.
Velocity Merchant Services provides all required signage to ensure your business is fully transparent and compliant.
Not likely. Most customers appreciate the transparency and choice the Cash Discount Program provides. Many are happy to pay with cash to receive a discount, and those who prefer cards still have the option—just at the standard listed price. When implemented correctly with clear signage, businesses typically see little to no pushback and often benefit from improved margins and stronger cash flow.
At Velocity Merchant Services, we make it easy to get started with a simple, affordable setup process. Our team handles everything—from equipment setup to signage—so you can start eliminating processing fees right away.
For full pricing and implementation details, contact us today and we’ll walk you through how the Cash Discount Program can boost your bottom line.
Getting started is easy. Just contact Velocity Merchant Services, and our team will walk you through every step of the setup process. We’ll ensure your POS system is properly configured, your signage is compliant, and your staff knows how to explain the program to customers.
You’ll be up and running quickly—and saving on processing fees from day one.
