A major ISO (Independent Sales Organization) recently announced they would be discontinuing their Non-Cash Adjustment program in October of 2023. Clearent by Xplore, a St Louis, MO payment processing company, said they would be discontinuing the program and implementing dual pricing or true cash discounting.

What’s The Difference?

With True Cash Discounting the customer is shown the higher card price. A cash discount is applied at the register when payment is made.

With Dual Pricing the customer is shown a list price (higher card price) and a discounted cash price.

With Non-Cash Adjustment the customer only sees the regular prices. A Non-Cash Adjustment is added to the receipt.













Who Is Requiring This Change?

In February of 2023, VISA rolled out changes in the USA & Canada regarding surcharging. a 3% cap was placed as the limit. They also took the position that NCA, or anything that adds a fee as a line item when a card is used, is actually a surcharge.

New York State agrees and has been cracking down on businesses with fines starting at $5,000.

From the NY lawsuit that was settled in 2019:

“Businesses are not allowed to advertise a price and add a surcharge at the point of sale when a consumer elects to pay with a credit card. Instead, businesses are required to inform consumers of the higher credit card price for a product or service by posting the higher price. Businesses are also able to offer a discount to consumers who pay in cash.”

It Seems Like The Same Thing

The end result is the same. If a consumer uses a card in any of these scenarios, they will pay more than if they had paid with cash. The difference is how it is presented to the customer.

A recent article from Forbes quoted Visa Chief Executive Office Ryan McInerney “We’re just making sure that when consumers do get surcharged, it’s something that’s fair and equitable,”  “We don’t feel great that consumers get surcharged. But, of course, in certain jurisdictions in the US and around the world, merchants have the ability to do that.”

If you are currently adding any kind of fee when a customer pays with a card, it is your responsibility to make sure that you’re doing so in a compliant manor. If you are not sure or have questions you should contact your current processor or schedule a free consultation with us.


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