Operating a cash discount program or dual pricing program can be a great way to increase revenue and reduce costs for your business. In this blog post, we will discuss how to set up and operate a true cash discount program or dual pricing program for your business.  It is very important

What is a cash discount program?

A cash discount program is a pricing strategy that offers a discount to customers who pay with cash instead of another form of payment. The program offers a discount at the register to customers who choose to pay with cash.

The discount is usually 3-4% of the transaction amount but can be any amount the business owner wants to offer.

Many companies are still offering what they call a cash discount program but Visa and other card brands label it as surcharging.  Any fee added at the register is NOT a cash discount program that is now considered a surcharge.


Surcharges may not be greater than 3% and may not be charged on any debit cards.

Card brands are beginning to fine merchants for first offenses over the 3% limit, for surcharging debit or for issues with signage and disclosure.  Do not be the next merchant to be hit with a large fine.  Allow a trained team to help you implement your program correctly.

What is a dual pricing program?

A dual pricing program is similar to a cash discount program, but instead of offering a discount at the register, there are two prices posted on each item.  There is the higher regular price and the lower cash price. This pricing strategy can be used to offset the cost of credit card processing fees and encourage customers to pay with cash.

Setting up a cash discount program or dual pricing program

1. Check state laws

Before setting up a cash discount program or dual pricing program, it is important to speak to a qualified and trained merchant services company such as AMP Payment Systems.  Setting up a true and proper cash discount or dual pricing program is legal in all states.

However, surcharging at the register is illegal in some states and limited in others.  It is highly recommended that you receive the training and support needed from a qualified merchant services company.

2. Choose a payment processor

If you are setting up a cash discount program, you will need to choose a payment processor that offers a cash discount program and can help you set it up correctly. Many payment processors offer cash discount programs that now fall into the surcharge category.

It is important to make sure that your pricing strategy is clearly communicated to your payment processor so that they can properly process transactions.

3. Update your point-of-sale system

Any changes needed to your point of sale system or terminal can be handled by your qualified merchant processor.

4. Train your staff

It is important to train your staff on how to properly implement the cash discount program or dual pricing program. This includes educating them on the program’s benefits, how to communicate the program to customers, and how to process transactions using the new pricing strategy.

Operating a cash discount program or dual pricing program

1. Clearly communicate the program to customers

It is important to clearly communicate the cash discount program or dual pricing program to customers. This includes displaying signage at your store, including information on your website, and training your staff to explain the program to customers. Make sure that the signage and information are clearly visible and easy to understand.

2. Implement the program consistently

It is important to implement the cash discount program or dual pricing program consistently. This means applying the same discounts to all cash transactions. This consistency will help build trust with your customers and ensure that the program is effective.

3. Monitor the program’s effectiveness

It is important to monitor the effectiveness of your cash discount program or dual pricing program. This includes tracking sales and revenue, as well as monitoring customer feedback.

If you find that the program is not effective, you may need to adjust your pricing strategy or marketing approach.  The AMP Payment System team can help you adjust as needed.


A cash discount or dual pricing program is an excellent way to reward customers that pay in cash and still be very welcoming to those paying with non-cash payments.

By working with a qualified professional you can quickly and effectively implement your cash discount or dual pricing plan and ensure value addition for you and your customers.

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