Cash Discount FAQ's

Cash Discount FAQ’s
How does cash discounting work?

Cash discounting works by giving a discount to all customers who choose to pay with cash instead of a credit or debit card. Customers who choose to pay with a credit card will pay the marked amount because the processing cost is built into the cost of the product. This allows the business owner to get the full payment from the customer and not incur any credit card processing fees.


Customer goes to the register to checkout and has \(20 worth of goods. Customer advises cashier that they will be paying with cash, which makes their total \)19.30.

Rules of Cash Discounting
  • Correct signage must be posted at the door and check out.

  • The amount of the added service fee must be clearly displayed on the receipt. Merchants with a Cash Discount Program need to display the Base Amount of the transaction, the Cash Discount, and the Total Cost of the transaction on the transaction receipt.

  • Merchants must verbally explain to each customer that they will save money by paying with cash.

  • Merchants must adhere to the rules of their state or region.

  • Cash discounting does NOT apply to debit cards, per credit card regulations.

  • Some states prohibit the use of cash discounting. Make sure you have researched and understand the rules and regulations in your state prior to rolling out a cash discount program.

  • A flat fee of 3% per transaction will be applied to all debit transactions which can not be passed to cardholders.
Sample Signage:

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Getting Started

Please contact your Point of Sale provider to ensure that your system is compatible with the BlockChyp cash discount program. In addition, you will need to ensure your Point of Sale is properly configured.

Once you have worked with your Point of Sale provider, contact BlockChyp via email at or give us a call at 509-590-1945 so we can send out the application to the owner(s) on file. Once the signed documents are received, we will collaborate with you and your Point of Sale provider to change your pricing policy and enable cash discount on your account.