PYMNTS.com Cites Jonathan Razi on Visa’s Cash Discount Bulletin
“Visa has released a bulletin revealing that many programs marketed as ‘cash discount’ are non-compliant with the payment company’s rules.
The company explained that its discount offer rule prohibits programs that encourage merchants to add a fee on top of the normal price of the items being purchased, and then give an immediate discount of that fee at the register if the customer pays with cash or debit card. Visa added that merchants who engage in this type of cash discount program are subject to non-compliance action.
‘To maintain a level playing field for all participants of the payment system, Visa actively enforces its rules pertaining to cash discount programs. Acquirers should proactively monitor the discount programs offered by their processors or agents to ensure that the programs do not violate the Visa rules,’ the company stated.
‘Visa’s bulletin gives our industry much-needed clarity: “cash discount” is not a loophole within the rules, and merchants that add a fee at the point of sale must comply with the requirements for surcharging, regardless of what they call the fee,’ Jonathan Razi, CardX CEO, said in an emailed statement.”