Vagaro allows you to set up discounts for cash but does not permit surcharges, convenience fees, or minimum transaction amounts to be included in your prices.
Important
Do NOT use fees to implement a Discount for Cash, which violates Card Brand rules.
Surcharge (Not Permitted on Vagaro): A charge that some merchants add to credit card transactions to cover their payment processing costs. (Legal restrictions and Network Rules apply. Vagaro Merchant Services does not support surcharges).
Convenience Fee (Not Permitted on Vagaro): A fee only allowed for some government and utility agencies.
Minimum Transaction Amount (Not Permitted on Vagaro): A merchant can set a minimum credit card purchase amount. This is not allowed on any debit card; therefore, this option is not allowed on Vagaro.
Cash Discount (Allowed on Vagaro): A discount offered to customers paying in cash.
Vagaro absolutely prohibits processing surcharges, convenience fees, and/or minimum transaction amounts through our system. Violations will result in fines by Visa starting at $1,000 for the first offense and $25,000 with a lifetime ban from all credit card processing on the second offense.
"Discount for cash" is a pricing strategy that businesses offer to give a lower price to customers who pay with cash rather than using credit or debit cards. For credit card processing, merchants may charge a price for customers who choose to pay with a credit card to cover the fees associated with card transactions while offering a discounted price for those who pay with cash.
Merchants are not permitted to post a cash price and then charge a higher price for cards at the point of purchase.
This practice should comply with relevant laws and regulations because some jurisdictions may have restrictions on offering discounts for cash payments. Additionally, businesses should clearly communicate their pricing policies to customers to avoid any confusion or dissatisfaction.
In Vagaro, you can update the prices on your menu to include the sales price of the item you're selling and the processing fee for card payments. You can then create a preset discount that you can apply every time a customer pays with cash.
Comments
2 comments
This article is interesting, as there are other competitor platforms that allow the user to charge the customer the surcharge.
Hey Destiny,
There are strict regulations required to allow surcharges, such as posting signage in the window, counter, receipt, products, etc., registering that you're charging surcharges with Visa and MasterCard, and processing surcharges only on credit cards (not debit). Surcharges are not allowed in many states. Because of these factors and our partners who do not allow this, we cannot offer surcharges.
Thanks,
Jamie
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