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Are they legal and are they permitted in merchant agreements? A cash discount is when you post credit card prices and offer a discount on that price for customers who pay with cash. A surcharge is when you post cash prices and charge an additional fee on top of that price for customers who pay with a card. In the first situation, a customer pays less than the listed price. In the second case, they pay more than the listed price.
7.4: Invoicing - Terms of Payment and Cash Discounts
Cash discounts refer to an incentive that a seller offers to a buyer in return for paying a bill before the scheduled due date. In a cash discount, the seller will usually reduce the amount that the buyer owes by either a small percentage or a set dollar amount. Cash discounts are deductions allowed by some sellers of goods, or by some providers of services, to motivate customers to pay their bills within a specified time.
Sticky price tags stuck on marked up merchandise led me to believe all retail prices were firm, fixed, and immovable. Guess what? I was wrong. By following these 22 cost-cutting ways you too can get an instant discount on anything.