Can I charge extra for card fees or offer a cash discount?
The real decision isn't just about math—it's about staying compliant, staying transparent, and keeping customers comfortable while you protect your margins.
The Narrative
The Empathy
You've finally stopped losing sales to the "cash only" sign, but the card processing fees are eating away at your profit. It feels unfair that a $5 item turns into $4.70 after fees. You've heard other vendors add a card surcharge or offer a cash discount, but you don't want to surprise customers or accidentally break a rule at the market.
The Education
The rules aren't uniform. Some states restrict or require specific disclosures for card surcharges, and card networks have their own guidelines on how surcharges are presented. Cash discounts are often easier to explain because they keep the listed price intact and reward customers who pay with cash, but even then you need clear signage. The safest path is to check your state rules, your payment processor's terms, and any market policies, then keep pricing and signage consistent so nobody feels caught off guard.
The Solution
Build a small pricing policy that protects your margin and your reputation. Set your baseline prices to cover fees, then decide whether you want to advertise a cash discount for customers who save you processing costs. If you do, use simple wording at the booth like, "Listed prices include card fees—pay with cash and save $1." Train yourself (and helpers) to mention the discount before a customer pays. When the policy is consistent, customers feel respected, and you keep more of each sale without risking compliance issues.
