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Cash Discount Program

Cash Discounting and Discount Offers Explained

Because cash discount or discount offer programs have become increasingly popular at merchants, WOW Payments is reminding that discount offer programs should be evaluated to ensure compliance with the Visa Rules.

Here at WOW Payments we have received an increasing number of questions in relation to discountoffers, or what are commonly called “cash discounts.” While there are many different programs beingoffered to merchants by their processors or agents, the Visa Rules on discount offers should be consulted when considering whether a program of this type would benefit the merchant.

Visa’s discount offer rule (ID#: 0008590) states that while merchants may request or encourage a cardholder to use a means of payment other than a Visa card, the method for doing so must be permitted under the Visa Rules, such as offering a discount from the merchant’s list, stated or standard price, among other possible incentives.

An example of a merchant segment that properly implements this model is automotive fuel merchants.

Oftentimes there is signage at fuel merchants that clearly displays the credit price next to the discounted cash or debit price. It is important to note that the discount is taken from the regular priceof the fuel, and does not constitute any additional fee or surcharge that is removed when the customer pays with cash or a debit card.

Example of signage sticker

Cash Discount

As an incentive for customers we now provide a discount to pay with cash or in-store gift card by giving a 4% immediate discount.

Cash Transaction

Credit Transaction

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