Since First Data removed the Cash Discounting Applications from their Clover Marketplace and from all Clover Devices, does this mean the end of Cash Discount Pricing? The best answer on this question is probably, at least in its current form.

Several people in the industry believe that First Data felt that there was too much of a risk from receiving a penalty from Visa to keep the applications on their Clover devices. Visa’s rules state that a price increase for credit cards must be on the product sticker on all products. If the price increase is on the sticker, then Cash Discounting is allowed at the counter for check out. I sign at the counter stating that a price increase of x.xx% will be applied on all sales, unless paying with cash is against Visa Rules.

The Durbin Amendment allows price increases and cash discounts, but again the product/service has to be given a specific price, then discounted. Cash Discounting, how it works today adds the price increase at the time of check out when paid with a credit card. Again, this technically is against Visa Rules. So, unless processors change how their Cash Discounting payments are advertised and used, Cash Discounting will be gone. No one will not to take the risk of a law suite.

Stay tuned as more information comes out on any other changes to Cash Discount programs. We here at Accept Credit Cards feel it is always best for our merchants to be informed on industry enhancements and changes.

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