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cash discounting & Surcharge Programs

Credit card processing costs businesses hundreds of thousands of dollars - money you could invest in growing your business. With low-cost credit card processing programs like cash discounting and surcharging, our users keep more money on every transaction.

FruxPay provides support with the following:

  • Surcharging
  • Cash Discounting
  • State Lvl Compliance
  • Lowest Merchant Fees
  • Initial Setup
  • Unmatched Support
Business Benefits with Low-Cost Credit Card Processing

Cash Discounting how does it work?

Cash discounting credit card processing is a form of payment that doesn’t charge the business for credit card transactions. Credit card processing fees eat into an enterprise’s bottom line, which is why many small businesses choose payment processing platforms with zero-fee options.

Fees are passed onto the cardholder at businesses with cash discount credit card processing. There is a slight variation in costs for payments made with a card versus those made with cash. The business offers customers a choice between a slightly higher price for the convenience of paying with a card or paying at the original price with cash.

Another way of structuring zero-fee credit card processing is to charge customers the original price when they pay with a card and offer a cash discount program for non-cash payments.

It gets a little more complicated when shoppers use debit cards. Fees for debit card payments may be eliminated depending on if you’re using a surcharge or cash discount program. Cash discounts will eliminate processing fees for debit payments, but surcharges will not.


Can I offset credit card fees with Surcharge processing?

Surcharge credit card processing adds an automatic surcharge to eligible transactions. If a customer pays with an eligible credit card, your payment terminal adds a surcharge to cover the processing fees. Debit cards are not eligible card types.

This automated process ensures your staff can quickly accept payments, regardless of whether they're eligible for surcharging a specifric transaction.

Other types of surcharging are manual, which can cause operational issues for your staff members and slow down payments.


What to Know about Passing Credit Card Fees to Customers

There are a few downsides to zero-cost payment processing. Customers may not be happy about paying extra to use their credit cards. Because many businesses allow credit card payments, charging extra for those transactions can become a competitive disadvantage.

Particularly in competitive niches, making fees the responsibility of the customer may cause them to shop with a competitor instead. With credit card companies offering tempting rewards, many customers may not be tempted by cash discounts.

Also, every state has rules about zero-fee credit card transactions, surcharging, and cash discounts. Businesses must understand their state's laws before choosing the right payment processing system for their organization.

These states and territories limit passing credit card transaction fees to consumers:

Restricted states

Colorado Connecticut Massachusetts New York

Prohibited states

Maine Puerto Rico

Laws regarding Surcharging and cash discounting Credit Card Processing

One of the most challenging aspects of surcharging and cash discount credit card processing is complying with the laws surrounding this payment practice. Some states/territories, like Maine and Puerto Rico, have specific rules that disallow this type of processing. However, the majority of states in the US do allow various forms of surcharging, provided that regulations are followed correctly.

If you have a state ban on surcharging, you can still enjoy the benefits of a cash discount program instead. You can better research your state's credit card processing laws online. Credit card processors can also provide information to help you comply with local regulations.

Supported Businesses for low cost Credit Card Processing

At FruxPay, we support all types of different businesses. We work with various industries supplying cash discounting, surcharging, and other payment processing services.

We also welcome high-risk merchants, unlike many other payment processing companies out there. We're an excellent choice to support high-risk verticals; our bank and processing partners allow FruxPay to support almost any industry. We partner with any low or high-risk industries for free credit card processing services.

Common Questions About Zero-fee Credit Card Processing

We receive a lot of questions about no-fee credit card processing. Have a question that we don't answer here? Just reach out to the FruxPay team to learn more!

  • At FruxPay, we're happy to work with any business, regardless of size, risk level, or processing history. Most businesses that want to accept credit cards can qualify for zero-fee processing.

  • While completing a transaction, if you use a credit card, the original price increases with surcharging. There are strict rules in various states regarding cash discounts, so explore this.

    Cash discounting provides customers with a discount for paying with cash. This means that the original price is reduced if you use cash.

  • Yes, but it's critical to remember how will your clients respond. If other businesses in your industry don't pass on credit card fees, they may choose your competitors for their next purchase.

  • Compliance and restrictions vary from state to state. It's essential to align with a payment processor that can help avoid costly fees and fines for not following state guidelines and regulations around cash discounting and surcharging options.