A cash discount is a lower price for customers who pay with something other than a card, such as cash, check or a bank transfer. Visa's US rules let a business offer a discount, rebate or other incentive for using another means of payment, except where the law prohibits it. To do it correctly, the business shows either the card price alone or the card and cash prices side by side. The card total must come from those displayed prices. If the card price is reached by adding a fee at checkout, Visa may treat it as a surcharge.
What is a cash discount?
Visa's surcharge Q&A describes it as a "discount offer", commonly called a cash discount: a discount or incentive for a cardholder to pay by a method other than their Visa card. The price goes down for the other method. It doesn't go up for the card. That is the difference from a surcharge, which adds a fee to a credit card payment.
What do Visa's rules allow?
Visa's Core Rules let a US merchant encourage a customer to pay another way, except where the law prohibits it. The methods include:
- An immediate discount from your list or standard price, a rebate, or a free or discounted product, if the customer pays another way.
- Saying which method you prefer.
- Promoting another method through signs, or the size, prominence or order of the payment choices.
- Telling customers what each method costs you, either the estimated or the actual cost.
Visa also lets a merchant offer a non-monetary benefit for using a method other than a Visa card.
How do you show prices with a cash discount?
Visa's Q&A says the merchant must display prices in one of two ways:
- The card price only, per item.
- The card price and the cash price side by side, per item.
When the customer gets the final bill, the card total must be the full total of the items at the displayed prices.
When does a cash discount become a surcharge?
When the card total is reached by adding a fee for paying by card. Visa says a bill built that way may appear to be, and may be treated as, a surcharge, and then all of Visa's surcharge rules apply: credit cards only, the 3% cap, 30 days' notice to your processor and the disclosures.
| Cash discount | Credit card surcharge | |
|---|---|---|
| Starting price | The card price | Your normal price |
| What changes | Price goes down for another method | A fee is added for a credit card |
| Cards it touches | None, the discount is for another method | Credit cards only |
| Visa rule | Discount Offer, section 1.5.4.11 | Surcharge rules, section 5.5.1 |
Can a cash discount cover bank transfers?
Yes. Visa's rules speak of "a means of payment other than a Visa Card", and cash is only the common name. A business can show a card price and a lower price for paying by bank transfer, as long as the card price is the one displayed. A business that shows both prices this way is sometimes said to use dual pricing.
Do state laws apply?
They can. Visa's discount rule applies "except where prohibited by applicable laws or regulations". Check your own state's law before you set prices this way.
This page uses Visa's published rules. Mastercard and the other networks publish their own, and your processor applies them. General information, not legal advice.
- Visa: U.S. Merchant Surcharge Q and A
- Visa Core Rules and Visa Product and Service Rules, 18 April 2026: section 1.5.4.11 (Discount Offer – US Region and US Territories), section 1.5.4.13 (Incentive to Use Other Payment Method), sections 5.5.1.5 to 5.5.1.9 (credit card surcharges)
Every figure on this page was checked against these sources on Oct 6, 2026. General information, not legal or tax advice.