can I give a discount for cash paying customers?

Question

I was was told that it is not legal to give a discount to cash paying customers or to charge more for cc transactions in my business.

Answer 1

It is probably against your credit card policies to charge MORE because someone is using a credit card. However, they cannot dictate what you do for cash paying customers. I would say it is fully legal to do so.

Answer 2

Depending on were you are in the world, although its generally more of a given practice in business to try and keep all prices fair to all of your customers, some people will charge a small percentage less for cash than they will with charge because of the fees involved in the transaction. I seriously don't think its illegal in anyway, but its probably more unethical than anything else, if your unsure contact your countries consumer affairs department or your legal adviser at best and and ask them as they will know for sure.

Answer 3

By law you can charge a transaction fee for credit card paying customers. If you are really worried about the 2% fee or so that you are paying for this...I would reommend taking a look at your margins.

Answer 4

It is against your merchant agreement to charge a fee to anyone using a credit card. You can charge anything you want to someone who is paying cash (i.e. cash and carry discount, popular with liquor stores)

Answer 5

I know of at least one place that gives a cash discount. I don't see why you wouldn't be able to do so.

Answer 6

You could not charge them tax. Of course, you couldn't report the sale, either. You also wouldn't be able to advertise that or the IRS will be all over you. That's kind of a sticky situation...