What are the requirements with respect to cash discounts?

Article
Read time: 6 minutes

Businesses are allowed to offer discounts for consumers using cash under certain circumstances. If a business will offer a cash discount, they must “clearly and conspicuously” provide notice of the discount. 

To "clearly and conspicuously” provide notice, a business conducting in-person transactions must:

  1. Clearly display both the cash and credit prices wherever prices are listed for goods or services, e.g. menus or price lists; or
  2. Post signage that lists a specific dollar amount or percentage of the cash discount in highly visible locations, e.g. at the point of sale or on the menu/list of prices.

To “clearly and conspicuously” provide notice, a business conducting online transactions or transactions processed by way of digital payment applications must

  1. Provide notice on the website or digital payment application in each section where there is pricing, as well as at checkout.
 

If your business is not offering a cash discount, you cannot impose any fee or other charge related to the form of payment being used by the consumer.