--- title: Cash Discount Overview & Setup Process description: This article provides an overview of Cash Discounting --- [Skip to content](https://support.teesnap.com/cash-discount-vs-surcharge-whats-the-difference#main-content) English Show submenu for translations [Create a Support Ticket](https://support.teesnap.com/kb-tickets/new?hsLang=en) [Customer portal](https://support.teesnap.com/tickets-view?hsLang=en) [![Untitled design (86)](https://support.teesnap.com/hs-fs/hubfs/Untitled%20design%20(86).png?width=240&height=55&name=Untitled%20design%20(86).png)](https://support.teesnap.com/?hsLang=en) Open main navigation Close main navigation - English Show submenu for translations - [Create a Support Ticket](https://support.teesnap.com/kb-tickets/new) - [Customer portal](https://support.teesnap.com/tickets-view) - [Go to www.teesnap.com](https://www.teesnap.com/) [Go to www.teesnap.com](https://www.teesnap.com/?hsLang=en) Teesnap Knowledge Center - There are no suggestions because the search field is empty. 1. [Support - (844) 458-1032](https://support.teesnap.com/?hsLang=en) 2. [Teesnap App](https://support.teesnap.com/teesnap-app?hsLang=en) # Cash Discount Overview & Setup Process ## This article provides an overview of Cash Discounting and how it differs from Surcharge #### Understanding Cash Discounting In a cash discounting model, businesses display two prices: the regular price, which applies to card payments, and a discounted price for cash payments. For example, if the regular price for an item is $100, customers who pay with a card would pay $100, while those who pay with cash might only pay $97, reflecting a 3% discount. This pricing transparency allows customers to make informed decisions about their payment method, with a clear incentive to choose cash. **![Screenshot 2024-11-11 at 5.20.01 PM](https://support.teesnap.com/hs-fs/hubfs/Screenshot%202024-11-11%20at%205.20.01%20PM.jpeg?width=688&height=516&name=Screenshot%202024-11-11%20at%205.20.01%20PM.jpeg)** **This feature eliminates the need for businesses to calculate or adjust their prices manually**, as Teesnap handles the discount application based on the payment method selected. The POS system tracks and reports cash discounting activity, providing valuable insights into payment trends and cost savings achieved through reduced card processing fees. It's important to distinguish cash discounting from surcharging, which involves adding a fee to card payments rather than offering a discount on cash payments. While both strategies aim to offset processing fees, cash discounting is often more palatable to customers, as it frames the pricing in a positive light by offering savings rather than additional costs. **Advantages:** - Enhances brand and consumer experience. - Credit card users don't feel penalized. - Cash users feel rewarded. - Business operators save on processing costs. - Legal in all 50 states **Considerations for Implementation** To implement cash discounting effectively, businesses must comply with relevant state and federal laws, as regulations vary. 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