Are you sick of credit card processing fees eating away at your restaurant’s profit margin? Cash discount surcharging for restaurants is a merchant service solution that virtually eliminates credit card processing fees. It might sound too good to be true, but with this service from Wholesale Payments Direct, you pay us, and we eliminate most of your monthly credit card processing fees. The concept is simple: whenever one of your customers pays with a credit card, a small additional fee—known as a surcharge—will be added to their bill. Cash-paying customers will not pay this additional charge.

How Cash Discount Surcharging for Restaurants Works

The restaurant industry is unique because customers are already used to factoring in the expense of a tip when they pay for meals. Think of the surcharge like a tip; it’s a small service fee that ultimately helps offset the restaurant’s credit card processing fees. Your loyal customers will understand that.

When you’ve implemented a cash discount surcharge, the prices you have listed on your restaurant menus become the cash prices. If your customers pay with a credit card, they will be slightly more than the menu prices because of the surcharge. Don’t be afraid of the surcharge deterring your customers, it will go unnoticed a vast majority of the time. If the food you’re selling is truly exceptional and the atmosphere is high-quality, patrons will be willing to pay.

Complying with Cash Discount Surcharging Laws

Cash discount surcharging for restaurants is perfectly legal. There are just a few simple regulations you need to follow. A surcharge is a small price to pay for the big benefits of not paying huge monthly credit card processing fees.

Hanging the Proper Signage

First, you must make sure you have the appropriate signage in your restaurant clearly telling your customers that your establishment has a cash discount surcharge. Make sure to check your local laws, because some states require that these signs go up a certain amount of time before you implement the program.

Installing the Right Hardware

You will also need a specific payment terminal to surcharge your customers. Such terminals will print your receipts with the surcharge clearly marked. There must be three separate lines included on this receipt: a subtotal before the surcharge, the surcharge itself, and the total after they’ve been added together.

Limiting the Surcharge

There are also legal limits on how much the surcharge can be. It must only be a small percentage of a customer’s total, and this surcharge cannot be placed on a debit card. Make sure you consult your local laws to see if there is anything else you need to do before implementing a cash discount surcharge. Also, check with your credit card companies to ensure you are complying with any other rules they have.

If you’re interested in learning more about cash discount surcharging for restaurants from Wholesale Payments Direct—or any of our other merchant services—call us! We’d be happy to talk to you about our different options. Cash discount surcharging can make a big difference for your restaurant. Don’t let insane credit card processing fees get you down. Contact Wholesale Payments Direct!