What is the Difference between a Surcharge and a Cash Discount?
Understanding the difference between a surcharge and a cash discount is essential for optimizing your payment processing strategy. While both models help offset processing costs, they function differently at the point of sale:
- Surcharge Model: This adds a specific percentage-based fee (typically around 3%) at the time of checkout for customers who choose to pay with a credit card. It is an additional charge on top of the posted price. Under federal law, surcharges cannot be applied to debit card transactions, and they face strict state-level and card-brand regulations.
- Cash Discount Model: We often implement this through a dual pricing model, where your business posts a non-cash price and offers a discount to customers who pay with cash. Unlike a surcharge, nothing is added after the initial price is quoted; instead, cash payers are rewarded with a lower rate.
We recommend the cash discount program for many of our merchants because it is generally permitted in all 50 states and is often viewed more positively by customers as a reward rather than a penalty.
As your partner for better payment processing, we offer solutions like free Clover placements to help you automate these calculations. We provide competitive, wholesale-style rates with no setup fee and no cancellation fee.
Merchant must qualify for free or discounted hardware.
Related FAQs
-
How Much does the Clover Go Cost?
Read More »: How Much does the Clover Go Cost?The Clover Go hardware is priced at 29.99 dollars in the referenced shop. However, qualifying merchants may be eligible for a free or discounted hardware placement. In addition to hardware costs, merchants may also be subject to a monthly service…
-
What are the Processing Fees for Clover Go?
Read More »: What are the Processing Fees for Clover Go?Clover Go transaction fees are competitive and often reflect wholesale rates for qualifying merchants. While processing fees can vary depending on your specific merchant account agreement, general industry rates for these types of transactions are typically 2.6% plus $0.10 per…
-
Does Clover Go Work with my Iphone?
Read More »: Does Clover Go Work with my Iphone?Yes, Clover Go works with your iPhone. The Clover Go reader pairs via Bluetooth with iOS devices, allowing you to use your smartphone as a mobile payment terminal. Clover Go: Top Square Reader Alternative for 2026 Related FAQs
-
Can I Use Clover Go without a Merchant Account?
Read More »: Can I Use Clover Go without a Merchant Account?Yes, you generally need a merchant account to use Clover Go. The provided content states that Clover Go functions as a payment terminal that requires a merchant account. Specifically, it notes that businesses can secure competitive wholesale processing rates by…
-
How does Clover Go Compare to the Square Card Reader?
Read More »: How does Clover Go Compare to the Square Card Reader?Clover Go and the Square card reader differ across several key areas, including hardware capability, integration, and service model. Hardware and Connectivity: Clover Go is an all-in-one reader that supports EMV chip, NFC contactless, and magnetic stripe payments, whereas the…

