Cash discounts are a form of credit card processing where the customer pays the credit card fee or receives a cash discount for not using a credit card – a payment trend that’s becoming common across industries. While more and more businesses are offering a cash discount program as an alternative to raising their prices, it may not be a good fit for everyone. There are some important things business owners should keep in mind when deciding whether to implement this kind of processing.



  • Reduce or Eliminate Steep Credit Card Fees: The primary benefit is the significant amount of money your business will save by eliminating or reducing credit card processing fees. These additional funds can be utilized for needed expansion, improvements, hiring more people, additional marketing, etc.
  • Encourages More Cash Payments: People prefer to pay with credit cards but these programs also incentivize them to use cash.
  • Discounts: You are able to offer a discount to pay with cash – consumers always love a discount.


  • Card Spend: Consumers spend more when paying by card and credit card usage increases in a slow economy.
  • Price Resistance: Some customers will want to pay by credit card to capture their rewards yet not pay the fee to use a card. This highlights the favorability of cash discount programs.

Pay Proudly can help you determine if offering a cash discount is right for your business. Our mission is to help remove the confusion around payment processing by bringing clarity to our merchants, and we’ll help you ensure that your business meets all the regulations to be in compliance.

We welcome the opportunity to work with you to clarify your current rates, identify hidden rate increases, review how your rates compare to others in your industry and help you decide if a cash discount program is a good fit for you. Call us at (843) 707-6110 or click here for a complimentary effective rate audit and comparison.