Capital Bankcard-New England, LLC (CBNE) is excited to announce that we are now able to offer to our valued Merchants, a new Cash Discount Program.
A compliant Cash Discount Program, legal in all 50 states, allows companies the ability to offer their customers a discount if they choose to pay with cash instead of a credit card. The business adds a service fee to all products and services offered for sale, thus incentivizing customers to pay with cash in order to receive a discounted price.
A compliant Surcharge Program, legal in 43 states, allows companies the ability to charge their customers a surcharge (or fee) for those who wish to pay with a credit card, thus incentivizing customers to pay with cash in order to avoid an additional fee. Surcharging does not allow for the additional fee to be added to the use of a debit card. Merchants will still pay processing fees on debit cards.
If a business establishes a Surcharge Program in a state that does not allow for one (Connecticut, Colorado, Florida, Kansas, Maine, Massachusetts, and Oklahoma) that business can be immediately shut down and added to a Terminated Merchant File List (TMF) or Match List that prevents said business to be reopened without resolving the program correctly. Businesses that are not compliant, can be fined $1,000 per occurrence, increasing to upwards of $25,000 for repeat violations.
To ensure compliance, it is important to communicate directly with your states Attorney General’s office before establishing this program at your business. Each state has different rules and regulations that require the program to be clearly and accurately displayed throughout any business establishment. At CBNE, we are happy to assist you in setting up this program with the appropriate signage/verbiage to ensure compliance. It is, however, your responsibility to understand and stay up to date with the laws in your state and to operate this program legally.
Implementing the Cash Discount Program is an investment in your business that can result in a substantial amount of money saved on standard credit card processing fees. It may be required that your equipment is updated to include processing devices that calculate cash discount credit card transactions accurately with backend reporting in order to be compliant.
For more detailed information contact CBNE for a free, no obligation Cash Discount Startup Consultation call us at (860) 774-8210 or visit our Facebook page to book a consultation online.
On behalf of everyone at Capital Bankcard-New England, LLC we appreciate the opportunity to offer this new and exciting program and look forward to working with you.