While cash discount programs have been legal in all 50 states for several years, it has not been easy for Merchants to implement such programs since the lines between cash discounting and credit card surcharging are very blurry—and, while cash discounting is legal, credit card surcharging is illegal in many states.
This has been the case in New York for some time now, but a January 2019 ruling in the New York State Court of Appeals will grant Merchants slightly more leeway with surcharging, and accordingly, cash discount programs (many restrictions do still apply, though). In this blog post, we’ll review the facts on cash discount programs and surcharges, as well as what New York-based Merchants need to know to abide with state and card-brand regulations.