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Stop paying processing fees.

Dual Payments offers a cash discountprogram that will completely eliminate your processing fees.

cash discount program

Aren't Cash discount programs and surcharge programs the same?

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Business owners all over the world are checking out the cash discount program.

It’s not hard to understand why, since most business owners are losing anywhere between 2-4% in credit card processing fees with every transaction.

In a day and age where everyone wants things cheap and instantly, like same-day funding, it’s no surprise that cash discount credit card processing is on the rise.

Cash discount processing is gaining in popularity in the United States, but if you think about it, you’ve probably seen them around for decades.

Gas stations have used cash discounts on the price of gas for many years. If you pay with cash, it costs a little less per gallon. If you pay with a credit card or gift cards, the cost is as listed on the sign and on the pump.

What is a Cash Discount Program?

A cash discount program is a type of credit card processing that passes the cost of acceptance back to customers who choose to pay with a credit card or debit card. Cash discount merchant services allow business owners to continue to accept all major credit cards, but without the loss of 3-4% in fees.

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Keep 100% of your hard earned money with Cash Discount,the cheapest credit card processing available

How does cash
discount work?

Cash discounting works by giving a discount to all customers who choose to pay with cash instead of a credit card 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.
cash discount programs

Cash payment

A customer in a convenience store walks up to the register with $20 worth of goods. She notices a sign next to the register explaining that a 4% service charge is added to all store sales. By paying with cash, she gets an instant cash discount of 4%.

The attendant scans all of her products which come to a total of exactly $20.00.

The customer informs the clerk that she is going to be paying by cash, which makes her total $20.00.

Most banks also allow their customers to withdraw cash through a cash advance to make the money more accessible to the customer.

Realtime payments made in the form of cash will end up saving the customer some money. Using a credit card may result in simpler and faster payments, but they would be charged a small fee or surcharge for doing so.

A discount to customers paying with cash is given to the customer. It essentially rewards them for paying with cash. So, while credit card companies may prefer your customers to pay with cards, they will actually be rewarded for using cash.

Credit card payment

A customer in a convenience store walks up to the register with $20 worth of goods. She notices a sign next to the register explaining that a 4% service charge is added to all store sales. By paying with cash she gets an instant cash discount of 4%.

The attendant scans all of her products which come to a total of exactly $20.00.

The customer informs the clerk that she is going to pay with a credit card, and the total price of the goods changes, so she will be paying a total of $20.80.

The customer inserts their card into the terminal to pay for their goods, and is charged a total of $20.80 to cover the cost to accept credit.

The customer completes the transaction and leaves having paid $20.80 for $20 worth of goods, knowing that she could have saved 80 cents had she paid with cash.

The cash discount program allows the customer to pay with a credit card, just like normal. The difference is that they get the choice whether to incur the fee that would normally go to you, the business owner, or use cash for a discount.


cash discount credit card program

In both of the above cases, the cost of the goods being brought to the register was exactly $20.00. This is what the business has set as the credit card price of the goods. The customer paying by cash has $.80 deducted from the transaction as a cash discount, rather than paying the extra 80 cents to cover the processing fee.

By paying with cash, the first customer saved 4% on their goods by purchasing them at the cash price.

Paying with a credit card may make for faster payments, but the second customer incurred the credit card processing fee and paid for the cost of processing a credit card payment so the business didn’t have to cover that cost.

By utilizing cash discount merchant processing, the business receives the full payment amount of each transaction without paying any credit card processing costs or fees.

As payments innovation continues to evolve, you will find your customers using credit cards as realtime payments more and more. This is because the payments innovation make paying with a card far more convenient for the buyer.

Check out this case study of a business that’s using the cash discount program.

The More You Know

Is It Legal To Offer A Cash Discount?

One of the most frequent questions we get is “Is cash discount legal?” 100% yes, our credit card cash discount program is legal, utilizing a cash discount at the point of sale is completely legal in all 50 states. A cash discount can easily be confused with a credit card fee or surcharge, which is legal in only 40 of the 50 United States. (Surcharging is illegal in Texas, Oklahoma, New York, Massachusetts, Maine, Kansas, Florida, Connecticut, Colorado and California.)

One of the most frequent questions we get is “Is cash discount legal?” 100% yes, our credit card cash discount program is legal, utilizing a cash discount at the point of sale is completely legal in all 50 states. A cash discount can easily be confused with a credit card fee or surcharge, which is legal in only 40 of the 50 United States. (Surcharging is illegal in Texas, Oklahoma, New York, Massachusetts, Maine, Kansas, Florida, Connecticut, Colorado and California.)

Yes, it is legal to pass credit card fees to customers. It is legal and compliant to pass fees on using surcharge fees and cash discount programs. Surcharge fees are legal in 40 states while cash discount programs are legal in all 50 states.

While it’s legal to pass credit card fees to customers, we may be asking the wrong question. The legality of passing fees to customers is covered by the Durbin Amendment as a part of the Dodd-Frank Law (financial reform act.)

What should be asked though is if the card brand will allow passing merchant service fees and processing costs to the customer. Before setting up a program for your business, it’s vital that you read the rules of acceptance with the major credit card providers.

A cash discount program and a surcharge program are both payment systems that businesses use to recoup the merchant services fees that are charged each time a customer presents a credit card as a form of payment. A surcharge program adds on an additional fee at checkout to cover the merchant services fees. A true cash discount program gives the customer a discount for cash payment by avoiding any additional costs.

In many establishments that offer a cash discount program, the regular price or posted prices on each item are prices for credit card payment. Any payment card method other than cash keeps the price of goods the same to cover credit card processing costs, but using cash will reduce the cost by up to 4%. With our cash discount credit card processing, your customers will love you. When it comes to offering a credit card surcharge vs cash discount, which will your customer appreciate more? No one likes to feel nickeled and dimed with added fees (isn’t that why you’re here?), but everyone loves a discount.

No, surcharge fees are not able to be applied to debit cards or other forms of prepaid cards, like gift cards. Surcharge fees are directed towards credit card purchases, not cash purchases, as a merchant savings from credit card fees. Debit card transactions are not charged the same fees and have a different fee structure from credit cards or gift cards. Debit cards are charged a flat fee when presented as a means of payment.

The prohibition on debit cards is nationwide while customers who pay using American Express, Discover, Visa and Mastercard can be subject to additional fees in certain states. Visa Mastercard and others within the payment card networks are able to have a surcharge added to their final total, but not debit cards.

Surcharge program fees are often referred to as customer service fees as they are associated with fixed costs.

The average fees for credit card processing fall in the 2-4% range for most businesses. Each merchant account has a set credit card transaction rate it charges qualified cards, mid-qualified cards and non-qualified cards. The rate differs in most cases on each credit card transaction. Actual payment processing fees and monthly fees are determined by the card types, and any merchant fees are added on top of the actual cost to process a credit payment.

A merchant’s card volume and average ticket are taken into consideration by the merchant services provider to determine the fees that will be assessed to accept credit cards. Higher card volume and a low average ticket would be given a different rate percentage and swipe fee than those with low card volume and a higher average ticket.

Mobile payments and online payments through a virtual terminal also have a different fee structure depending on whether the card is present or absent during the transaction. The rate a business is charged is based on risk, but usually averages out to be between 2-4% of the transaction value.

Keep 100% of your hard earned money with Cash Discount,the cheapest credit card processing available

The Benefits of a Cash Discount Program

  • All of your processing fees are gone forever. You never have to pay a processing fee again.
  • Your customers don’t have to pay processing fees unless they want to. If they decide the rewards on their card outweighs the cost of acceptance, they will pay with a card. If they want the cheapest price possible, paying with cash gives them what they want.
  • It’s easy to switch. You receive the signs for the store as required by law and the terminal is a breeze to setup.
  • Tips are excluded from the non-cash adjustment. If your business accepts tips, there is no additional charge on tip price to the customer or the business owner.
  • You’ll never need to switch processors again. When you pay nothing for your merchant services account, it can be the account you use for the life of your business. Imagine being able to tell credit and debit card salespeople that your cash discount merchant account costs you $0 every month. You’ll never have to argue with another credit card salesperson again.
  • Free Terminals are available. Based on your monthly processing volume, free terminals are available for your business designed to work with the true cash discount program.
  • Free Point of Sale Payment systems are available. Based on your monthly processing volume and business type, we have free point of sale systems for your business that work with the cash discount program.
  • No hidden fees. You won’t find any surprising line items on your statement that hide fees you shouldn’t be paying. Your statement will read $0 at the end of every month while you accept every type of major card brand as payment for your business.
  • Cash purchases are fantastic for fraud prevention. As most people carry cash, paying by cash means that you can test any bills right at the point of sale for fraud, and be certain that you’re getting paid for each and every transaction. By maintaining PCI compliance rules, you’ll be safe from fraud.

There’s ZERO risk to try it out!

Unlike most merchant processors, we work only on month-to-month contracts. That isn’t just a marketing tool. We believe that if you don’t want to work with us, you shouldn’t have to. We don’t lock anyone into 3 year contracts or hide fees in legal mumbo jumbo in a 25 page contract.

If you want to see if cash discount program credit card processing is right for your business, it costs you nothing to give it a try. If you don’t like it for any reason, simply return the terminal to us and keep processing with your current processor.

Do you currently use a credit card processing cash discount program? Let us show you how we can get you a better deal, and if we can’t get you a better deal, we’ll send you a $500 Amazon gift card.

Find out how we’re different from other cash discounting credit card processing companies! Recent posts from our customers show how much they love us!

We want to take the risk out of experiencing what freedom from merchant processing fees feels like. If you’re ready to completely eliminate your processing fees, all it takes is a simple call or a quick fill in of the form below. Switching from other credit card companies will give you that freedom. You’re just 10 seconds away from never having to pay a processing fee ever again.

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We know you’ve got questions. You could spend the day reading every word of our website, but you might find answers more quickly by just asking someone from our team. That’s what we’re here for!

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Example of High Risk Merchants

  • 1-900 Phone companies – If you’re the type of company that charges people to have a chat on the phone, you’ll be considered high risk.
  • Adult Bookstores – Clearly a part of the adult entertainment industry, and an easy mark for the high risk tag.
  • Adult Entertainment – Any business labeled with the “adult” descriptor will automatically be assigned a high risk status.
  • Adult Toys – As “adult” is in the name, it’s an easy target for association with the adult entertainment market.
  • Airline Industry – Due to cancellations on high ticket purchases, this will put your airline company in the high risk category
  • Amazon Stores – By having a high rate of return, Amazon stores are seen as high risk.
  • Ammo Sales – Association with the weapons industry guarantees high risk status.
  • Annual Contracts – Any time an annual contract is involved it can be considered highrisk because most consumers forget they signed up and chance of chargeback can be high.
  • Antiques – With a high average ticket per item, antiques are considered a risky merchant type.
  • Astrology – The study of the celestial bodies and the influence on human affairs can be a chargeback target if customers feel like they aren’t getting the answers they want.
  • Auctions – Because of the nature of bidding on a product and not having a set price the risk level goes up.
  • Autographed Collectables – There is almost always a question as to whether an autograph is authentic, and therefore chargebacks are much higher in this industry.
  • Automotive Brokers – Brokers of automobiles have a very high average ticket are are therefore of higher risk.
  • Bankruptcy Attorneys – Since the people who are working with bankruptcy attorneys are usually in financial trouble, the odds that a payment would be charged back is higher.
  • Betting Services – In many states betting is illegal but for the legal states betting with a credit card has huge chargeback implications.
  • Brokering – When a third party is involved with selling a product the risk level goes up ten fold.
  • Business Loans (Merchant Cash Advances) – Loaning money is always risky, but with business loans and startup lending, high risk is present by the nature of the business.
  • Casino – Just like a betting service, if a customer gambles with their credit card the chargeback rate sky rockets.
  • CBD Products – CBD itself poses high chargebacks because of the legitimacy of the product and the health benefits promised.
  • CBD E commerce – CBD E Commerce has twice the charge back of retail CBD because many consumers don’t feel like the product they receive gives them the benefits promised.
  • Check Cashing (Check Processing) – The level of fraud in check cashing and cash advances is what gives this industry a higher risk consideration.
  • Cigarettes – With higher levels of risk for theft and criminal activity, cigarette sales are deemed high risk.
  • Collection Agencies (Collection Agency) – Many banks see collections as an unsustainable business model that is many times unreliable.
  • Collectible Coins – A higher level of chargeback in this industry gives it a high risk tag.
  • Collectible Currency – Due to the level of inauthentic collectibles, the risk of chargebacks are much higher with collectibles.
  • Copyrighted eBooks – When someone sells something copyrighted without permission many legal issues can arise.
  • Coupon Programs – With many coupon programs the coupons expire and once they expire the consumer wants the money back they spend.
  • Credit Counseling – Due to their clients usually being in financial problems, this industry is fraught with non-payment and fraud.
  • Credit Protection – Most people that need credit protection are bad with money so chargebacks abound.
  • Credit Repair – If a consumer needs credit repair then chances are they are a high risk for chargebacks.
  • Currency Sales – Many businesses that exchange currency do it at incorrect rates hence more chargebacks.
  • Dating Services – Dating is a volatile industry, and is also lumped in with the adult entertainment industry, making it a high risk account.
  • Debt Collection Services – As the collection of debt isn’t always possible, this industry retains the tag of risky.
  • Debt Consolidation Services (Debt Consolidators) – Consolidating debt is a challenging business and as debt is usually the problem, it’s seen as unsecure from a payment perspective.
  • Debt Repair Services – Since the clients of debt repair services are usually having financial challenges, it makes this industry seem a higher risk.
  • Discount Health Programs – Many people don’t feel they are really getting a discount so they try to get their money back and if they don’t the chargebacks sky rocket.
  • Discount Medical Care Programs – Just like the discount health programs if they don’t save the consumer wants their money back.
  • Drug Paraphernalia – Anything that is associated with the drug trade is considered high risk. Offshore merchant accounts are commonly used for this type of business.
  • E Commerce – As the source of the payment is unverifiable at the point of sale, any transaction without the card present has a higher risk of credit card fraud.
  • Ebay Stores – Many people sell items that aren’t as described so chargebacks can be an issue.
  • Electronic cigarettes – much like traditional cigarettes, e-cigarette sales are also deemed high risk.
  • Electronics – This industry has a much higher ticket compared with many other businesses. A chargeback for a $3,000 tv or two and your account can be in jeopardy rather quickly.
  • Escort Services – This is deemed a part of the adult entertainment industry and therefore needs a high risk merchant account and payment solution.
  • Event Ticket Brokers – If a customer buys a ticket and doesn’t use it they feel like they can charge the transaction back.
  • Extended Warranty Companies – Warranties are rarely used so people try to charge back the money that has been spent paying for them.
  • Federal Firearms License Dealers – Any organization associated with guns or firearms is automatically considered in this category.
  • Fantasy Sports Websites – Just like gambling, if a person starts to lose too often they try and charge back the transaction.
  • Finance Brokers – The entire financing industry is risky. By simply extending credit to other individuals, this business is betting that a majority of them will actually pay what they say they will.
  • Financial Advising/Consulting – The high risk tag on financial advisors isn’t about the advisors or their firm. It’s about the clientele and their current circumstances.
  • Financial Loan Modification Services – Due to a clientele in financial struggles, the high risk term is applied to any payments in this industry.
  • Financial Planning – Anything that includes risk for the consumer can have consumer implications with chargebacks.
  • Financial Strategy – Another risk and reward category, if money is lost, consumers try charging back making this a high risk industry.
  • Fortune Tellers – When a person doesn’t hear what they want to hear, or what is told doesn’t happen, the fortune teller can receive huge chargebacks.
  • Furniture Sellers – High risk only when its custom furniture.
  • Gambling – If money is lost the chargebacks rise.
  • Gaming – Chargeback levels skyrocket when consumers don’t win.
  • Get Rich Quick Programs – It’s rather common in this industry for an individual to purchase the training and then chargeback their purchase saying it didn’t deliver on what was promised.
  • Google Stores – With a high rate of return on their items, Google stores are considered high risk.
  • Gun Sales (Firearm Sales) – The gun and projectile industry is automatically associated with high risk credit card processing.
  • High Average Ticket Sales – With any high average ticket, just a couple of chargebacks can mean a massive shift in how risky the account is deemed by the processor.
  • Home/Vacation Rentals – Many issues with chargebacks can take place if the consumer decides not to travel.
  • Horoscopes – Many people believe this is hocum so will chargeback transactions.
  • How To Programs – A common practice in this industry is to purchase the program and charge it back with the description that it didn’t deliver what it promised.
  • Hypnotists – Many merchants will charge back these transactions if results they hoped for were not met.
  • Import/Export Business – Another example of taking goods over country borders which automatically brings in additional risk to any processing account.
  • Indirect Financial Consulting – When using a third party to consult, the high risk status gives the processor fraud protection.
  • International Cargo – Any time you introduce a multi-country element to credit card processing, the ability for fraud to be introduced skyrockets.
  • International Merchants operating in the US – Since the merchant isn’t operating from the United States, there are many unknowns about what is happening on the other side of their business, thus increasing the risk.
  • International Shipping – Transporting goods between countries is risky and introduces all sorts of elements to the financial stability of any transaction.
  • Investment Books – consumers get upset if the investor isn’t right which can lead to chargebacks.
  • Investment Firms – As investments are never a “sure thing” this is considered a risky industry for having a merchant account.
  • Investment Strategy – Anything with future promises can lead to chargeback.
  • Knife Sales – weapons of any kind are automatically given high risk status.
  • Kratom E Commerce – Accepting payments online is high risk, and Kratom is a substance in the health and wellness industry, which is also considered high risk.
  • Life Coaching – With no tangible goods involved in the transaction, life coaching is considered high risk.
  • Lingerie Businesses – Associated with the adult entertainment industry, chargebacks abound.
  • Lotteries – In most states you can buy lottery tickets with a credit card but if you’re allowed to and the ticket is not a winner, consumers try to chargeback the transactions.
  • Magazine Sales – Many magazine sales are recurring subscriptions, which can have issues with chargebacks.
  • Magazine Subscriptions – Same as magazine sales chargebacks can be huge when a recurring subscription happens. (often referred to as recurring billing.)
  • Mail Order Companies – When something is ordered through the mail chargeback risk can go up.
  • Marijuana Dispensaries – As marijuana isn’t a legal substance in every state, this is considered high risk due to the legality of the product. Cannabis credit card processing is available through Shift Processing.
  • Matchmaking Services – Another branch of the dating tree, and often associated with the adult entertainment industry.
  • Medical Devices – If a medical device doesn’t do what’s promised the purchaser may chargeback the transaction.
  • Membership Organizations – This is another instance of where the transactions don’t have any tangible product and are easily charged back to the merchant account.
  • Merchants on the MATCH list – If you are a merchant who has been reported to the MATCH list (Member Alert to Control High Risk Merchants) or the TMF (Terminated Merchant File) you are given high risk status.
  • Merchants with Poor Credit – Merchant accounts are given based on the credit score of the business owner. It’s assumed that the business owner is going to be making the financial decisions for the business, and a poor credit score reflects on the viability of any business transactions.
  • Modeling Agencies – At many agencies models are promised the world and it doesn’t happen. The consumer then wants their money back.
  • Movie Downloads – Transference of a digital product is considered of higher risk. Also, rarely is a physical card present at time of purchase.
  • Multilevel Marketing Sales – Often associated with pyramid schemes, MLM sales are considered a risky business.
  • Music Downloads – Purchasing any digital product is considered to be of higher risk than a physical transaction. Most of the time the card is not present in a digital transaction using a shopping cart.
  • Not A US Citizen Doing Business In The US – It’s possible to get a merchant account without a US social security number, but not having a SSN will increase the risk the processor will have in issuing a merchant account for your business.
  • Online Adult Membership Sites – If you’re running a website that is adult themed and requires payment for access, this is a highly volatile account and definitely high risk.
  • Offshore Corporations (Offshore Merchants) – The international element is what gives the high risk tag when looking for domestic merchant accounts.
  • Online Gambling (Online Gaming) – Without a card being present and gambling as the activity, there are two reasons why this would be on this list. Online payment alone is risky even without the gambling element.
  • Overseas Exporting Services – The introduction of the international element is what gains access to this list.
  • Pawn Shops – There’s a general stigma that goes along with pawn shops, and it’s reflected in their assignment to the high risk processors list.
  • Penny Auction Sites – Even though the customers are usually bidding at only a penny more per bid, users will commonly charge back the transaction when they don’t win.
  • Pepper Spray – Considered a type of weapon, pepper spray vendors are considered risky.
  • Points Programs – Points programs that cost money can cause chargeback issues if points are not used.
  • Pornographic Merchants – If you’re a part of the adult entertainment industry in any way, you’re considered high risk.
  • Precious Metals – Counterfeit metals can be a problem in this industry, making it more risky to accept payments for.
  • Prepaid Calling Cards – Anything prepaid that a consumer may not use increases chargeback issues.
  • Prepaid Debit Cards – When they expire or are lost consumers want their money back.
  • Psychic Services – “Honey, did you visit a psychic? No babe, I don’t remember visiting a psychic.” I’ll just reverse that charge then.
  • Real Estate – A common target for scams and identity theft is how real estate makes this list.
  • Replica Products (Watches, Handbags, Wallets, Sunglasses, Etc…) – As the product being sold isn’t authentic to the original manufacturer, the percentage of requests for refund is much higher than a traditional merchant.
  • Rewards Programs – If rewards are not spent, the consumer wants the money back.
  • Self-Defense – Since the payment provided is for instruction and not a physical product, the self-defense industry makes this list.
  • Self-Hypnosis Services – Yet another instance where the goods being transferred are of a service and not a physical product.
  • SEO Services – With a high rate of request for refund, SEO agencies make this list.
  • Social Networking Sites – Just like a dating site, if a consumer does not get what they want from it, they always like to chargeback.
  • Software Downloads – The software industry makes their way on to this list because of the digital nature of the goods being sold.
  • Sports Forecasting – An example of paying for information and not for a product, and usually not in person where the card would be present for the transaction.
  • Startups – Every startup is considered risky, and the percentage of startups that make it is quite small compared to the number that fail.
  • Student Loans – With the cost of a college education continually on the rise, so is the percentage of loans that default and never receive payment.
  • Strip Clubs – Associated with the adult entertainment industry gains the strip club access to this list.
  • Stun Gun Sales – considered a type of weapon, which makes it a high risk merchant.
  • Supplement Sales – The request for refund in this industry is quite high due to the nature of the product.
  • Sweepstakes – “Hey, I entered a sweepstake and I didn’t win. I’d like my money back please.”
  • Talent Agencies – “I paid thousands of dollars for headshots and glamorous outfits and I haven’t gotten any paid gigs. Pay me back my money please.”
  • Telemarketing Services – Telemarketing services many times do not have the results the purchaser would like to see, so the services are charged back.
  • Telephone Order Sales – Anything ordered over the phone has a increased risk of chargeback.
  • Timeshare Companies – When timeshares aren’t used, people want their money back.
  • Travel Agencies – If trips are not taken, consumers would like their funds returned.
  • Travel Clubs – Many travel club discounts aren’t what they were promised, increasing risk for chargebacks.
  • Vacation Rental Brokers – Third party brokers on prepaid vacation can have issues when customers cancel their trips.
  • Vape Shops – The level of criminal activity and theft is higher with vape shop merchants and therefore carries a high risk label.
  • Vitamin Sales – If the vitamins don’t provide the results the merchant would like to see they chargeback the transactions.
  • Web Designer – Because this service is prone to chargebacks, it has been classified as high risk.
  • Weight Loss – Considered risky because the results aren’t really up to the company, but rather the individual has to stick to the plan to get results, often resulting in chargebacks.
  • Yahoo Stores – Since the goods sold through Yahoo can easily be returned, they are considered a risky merchant.

Turn Your Residuals into Immediate Cash Today

Selling your residuals doesn’t impact your merchants—they’ll keep processing happily. So, if you need extra funds, explore a credit card residual buyout. It’s fast, easy, and a smart move for your financial game plan.