Yup, although you might want to make sure and wait for another commenter to confirm it as I am unsure of myself. Better yet, why don't you e-mail the Discover Card guys because they can help better...

I think that cash discounts are illegal. just nobody bothers to worry about it..

Surcharges on credit cards are illegal. They only call it cash discounts so they don't violate the law...

No loophole or anything illegal. It is called a cash discount because that is exactly what it is. A discount for paying (with Discover card) cash, what is so hard to understand? There are trade businesses that don€™t even accept CC€™s that give cash discounts...

I have never seen a.

"REAL".

Discount for cash..

Y'all are missing the point of the question. If surcharges are against Visa & MC policy because they want CCs to be equal to cash, then why don't they make it a condition that businesses who accept Visa & MC also cannot have cash discounts as well?.

Unless there's a legal reason that say they cannot make such a condition in their contracts, I would think that they would...

The idea is the customer makes their purchasing decision based on the advertised price..

The Discover card companies, rightfully so, believe that a customer is more likely to choose against using a card when the advertised price was $X but when they get to the register and offer the card it's $X+Y..

But if they already decided to buy it at $X, the offer of $X-Z to pay with cash is less likely to sway them to another purchase method..

Emotionally people react to the first as a surcharge or penalty for using a Discover card but in the second it's an "added discount" for using cash. People want to avoid penalties, but are ok with not taking advantage of an added discount..

While rationally thinking about it here, the end result should be the same it's not. The general public doesn't always think rationally when presented with advertising/purchasing decisions..

In regards to the cash discounts in trade accounts mentioned above usually you get the cash discount because you're declining net terms. But it's the same way advertise at $X, which can be paid over net terms offer $X-Z if you pay on delivery...

It is not illegal unless a specific law says it cannot be done...and the reality is that MOST jurisdictions realize 1) that such legislation is a waste of resources and 2) enough people still use cash that enacting a law that precludes such discounts will cost them votes come the next election. Thirdly, the reality is that the body politic has no business telling a proprietor that they cannot offer a discount on their merchandise for use of a specific method of payment..

There is no reason to penalize those that choose to pay cash by making them subsidize those that want to live on plastic...

Agreed. The credit surcharge/cash discount tends to be more of a card issuer policy than a law..

Three cheers for cash discounts. It's been my new standard question when paying... "if I were to pay this with cash, would you maybe drop the price to X?".

It's working more than I expected. Saving me more than the rewards!..

George,.

ARCO Gas Station had a cash price when you paid cash (a long time ago). I believe Arco only takes cash/ATM debit cards..

Ron..

This post has been edited by.

Ron1.

: 04 January 2010 - 12:34 PM..

I still believe that Visa & MC would/should not allow cash discounts as well, just to make their own product as absolutely equal as can be, but you do bring up some good points. Especially as far as consumer behavior..

The part in red hits home. Let's use eBay as an example. Some seller avoid selling fees by selling an item for a dollar then adding on outrageous shipping fees. Should I care as long as the final dollar amount to me is the same? Probably not, but I do..

...anyone anything regarding a whole variety of issues..

Yet, they do...

...and I get $0.03 or $0.10 OFF.

"CASH PRICE".

And I use my Discover card at the GAS STATION that is tied to the GROCERY STORE in the same parking lot..

Whenever I see this at any venue (whether it be a gas station, reseller, etc), I simply choose to spend my money elsewhere. Whether or not the loss a sale over a "few pennies" is meaningless to them is their choice...

Visa and Discover Card would love to force vendors to abolish cash discounts..

Several states prohibit retailers charging a fee for using a card (as we know). That said, several states also specifically protect the right of merchants to offer cash discounts. I know California, Colorado, Florida, Kansas, Maine, Maryland, Mass, New York, Oklahoma, Wyoming, and Washington have laws which specifically protect cash discounts..

So roughly 1/3 of the country has laws that prevent Visa and MC from making any real headway in getting rid of cash discounts.....

FOR A "REAL" CASH DISCOUNT YOU MUST ADVERTISE BOTH THE.

"CASH PRICE".

And THE.

"CREDIT PRICE".

1 gallon of milk $1.99 "CASH PRICE".

1 gallon of milk $2.19 "CREDIT PRICE".

You can't say credit cards are a 10% up-charge.

REGULAR GAS $2.579 "CASH PRICE".

REGULAR GAS $2.839 "CREDIT PRICE"..

That's what I was looking for. Specific legal reasons why they might not be able to squash cash discounts. Now, I suppose they could do this in other states, but at the same time I could also see them as feeling that would be too much work and hassle on their part to separate them for too little real benefit so they decided it wasn't worth it...

A so-called "CASH DISCOUNT" would have to be worth way more than the rewards on the credit cards.

You also need to take into account Discover card float time lost.

Extra time and gas to get the money in the first place (maybe the other direction)..

Only if you're able to get a rewards card.

As with everything, there is no one size fits all solution and when making a purchase, you have to weigh all your options and do what is best for you, your financial situation, and your goals...

Maybe the people who take advantage of cash discounts probably wouldn't be one using a card anyway?.

I'm sure they have the demographics (of who utilizes/provides cash disc) and analysis of this whole scenario (squashing cash discounts) and know if it's worth their time to battle it or not!.

This post has been edited by.

Jen23514.

: 04 January 2010 - 02:34 PM..

Very possible..

I'm sure they have studied it, but being secure in the knowledge that they have does nothing to satisfy my curiosity... hence the question...

Exactly. On something thats redily available like gas and such it's easy for someone to go accross the street and buy using credit (assuming they do not have a cash discount in place, or their credit price is comparable to cash at the other store)..

It's actually in the TOS of my processing agreement that the merchant is allowed to issue cash discounts. Visa most probably does that just like the tobacco companies put the surgeon general warning on their products..

How about something like a motorcycle dealership? You decide you want a Yamaha R1. Work out a price with the dealer in town who quoted you out the door cash price of say $10,000. You are aware there is a 3% cash discount..

My question for George is, are you going to drive 90 miles and pay $250 more to use your Discover card at another dealership(assuming they even have the bike you want)? Me?, naw I write em a check or stop by the bank and bring cash or a cashiers check. I have personal experience on this one..

I do know George's answer is he has no need for a Yamaha R1, but I'm asking people to assume you do..

Another huge one was a certain impliment dealer(several locations in my area) used to surcharge by 3% on any Discover card purchase over $1000. I do know that the management intended to honor the spirit of the rule by not surcharging on 90% of their transactions, but had been caught when a certain farm group paid with amex for several pieces of equipment before the surcharge rule was put in place..

The surcharge was put in place against my advice and later in the year Visa threatened (through me) to close the merchant account and have them added to the match list (industry blackball list)..

Now they have a 3% cash discount that applies to all transactions, doing more net damage to the consumer to protect themselves from the extremely large transactions. I do understand at the general consumer level how it seems wrong but I will say as the bill gets bigger the profit doesn't always go up at the same rate and the profit to the dealership on a $300,000 piece of equipment will not allow them to sell without the surcharge..

Doesn't answer the question, just gives a bit of insight as to why it's used...

LOL, I remember back when a cash discount was something.

Dirty.

, keeping the transaction off the books so to say. Now, people look at it differently, things have changed...

I know that at gas stations there isn't really a cash discount , it's just charging more to cover Discover credit card fees..

A gas station owner told me this. He said they barely make money off of gas especially when a Discover credit card is used..

This post has been edited by.

Unas2k5.

: 04 January 2010 - 03:04 PM..

MC/Visa only get to dictate the conditions of purchases made with MC or Visa. Cash is neither of those..

Allowing them to impose a "no cash discount" rule would be overstepping their authority, IMO..

Besides- why would you be in favor of eliminating another consumer choice? Even if you have a wallet full of CC's, you can choose the discount that has greater benefit to you and use it. Nothing about having CC's precludes you from taking the cash discount. Just pay cash if you come out ahead by doing so..

Visa/MC may not like it, but that isn't my problem...

Exactly. How does a "cash discount" affect you when you are still getting a better deal using a rewards card? Those without a rewards card can take the cash discount and nobody loses, except for MC/Visa. Which again- is not the consumer's problem..

What we're really arguing is whether the consumer should have 1 less choice in order to benefit MC/Visa..

Uh..no...

I (personally) bought a DELL DESK TOP and DELL NOTEBOOK.

I charged it and got 12 months at 0.00% (with minimum payments).

HAD I PAID CASH...THE COST WOULD HAVE BEEN HIGHER..

That was what it used to mean. I got my first car that way..

Well, then again.... in THAT example using credit is better..

Again, I think Radi said it best when he said:.

And.

If using 0% financing for a promo period is best for you, then do it..

If the cash discount when/if available is best for you, then do that..

It's not all that deep.

This post has been edited by.

Jen23514.

: 04 January 2010 - 03:30 PM..

It actually did cost you more. You bought an overpriced product because of the 0% for using credit. If you done your research you could have received a better product for a lot less, cash or credit. It just shows how easily the consumer is fooled...

Access to cash, is a savings in and of itself. I just purchased 20k with of equipment for my business, 0% for 6-12 months. Keeping that cash in my business, will net me an average return of 10-20%...

Plenty of businesses are above-board in their day to day operations. But I guess it is easier to generalize that if cash is involved it MUST be for illicit purposes (sort of like the same generalization that allows some people to think people have to be told what they think because they opine that certain retailers suck)...

I'm gonna' go buy a new washer and dryer at.

SEARS.

And ask for my.

"CASH DISCOUNT".

Forget about the 0.00% APR FOR 12 MONTHS..

The store I buy my appliances at regularly gives discounts if you decline the 0%..

0% ain't free for the store it usually involves the merchant doing a "buy-down" on the interest rate. So they pay 4, 5, or maybe 6% of the purchase for the finance company to offer you 0% for X months. And then they've got to push the paperwork and wait for funding..

Cash on delivery, no waiting, no paperwork, no buy-down = discount on purchase..

Have you ever asked at Sears? You may be surprised.....

ALL I CAN SAY IS.

...I have.

NEVER.

Been offered a.

"CASH DISCOUNT".

For any purchase..

Do you go into work and tell your boss "Oh, when you're submitting time sheets later this week please write down that I would have come into work even if my wage was $0.50/hr less so you only need to pay me that.".

If the customer is going to make the purchase at the non-discounted price, why push a discount on them?.

Hence the reason I said.

Ask.

And you may be surprised...

THE ONLY THING ANYWHERE CLOSE TO A DISCOUNT FOR CASH WAS.

...the company who put up my wood fence didn't take any credit cards at all.

He said I can pay cash or personal check.

1/2 now and 1/2 on the day it is finished..

I feel like I'm in a parallel universe where words have no meaning... or maybe I'm just a tad less tolerant and alot more pissy today than usual... but the original question had absolutely zero to do with whether or not cash was a good or better option...

Were they the only fence company who would work in your town? Huh? Were they? You should have stuck to your guns and said "Adios!"...