CardFellow Interviews Jonathan Razi on Cash Discount and Compliance
“Like Visa, Razi is unequivocal in his explanation. ‘The bottom-line is that most purported “cash discount” programs are non-compliant, because they list the cash price on the shelf and then add a fee at the point of sale. This brings them under the card brand rules for surcharging […] Instead, a true “cash discount” program must increase the price listed on the shelf and then reduce it at the register when customers choose cash.’
Some processors are becoming aware of the distinction. Razi mentions that First Data’s Clover removed all ‘cash discount’ programs from its app marketplace, stating in an email to users, ‘A “true cash discount’ does not add any fees or surcharges at the register.’
First Data confirmed to CardFellow that the cash discount apps have been removed but that it’s possible to surcharge through the Clover system.”