State Regulations

Under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Durbin Amendment”), a federal law, businesses are allowed to offer a discount to their customers or another incentive for using a certain method of payment, as long as that incentive is offered to all customers and the offer is disclosed clearly and conspicuously. For example, a business can offer its customers a discount, as an incentive for paying with cash or check, rather than a credit card.

Alabama

There are no regulations in the state of Alabama that prohibits a merchant from offering a cash discount to a customer to encourage that customer to pay by cash or similar means instead of a credit card for purchasing services or goods.

Alaska

There are no regulations in the state of Alaska that prohibits a merchant from offering a cash discount to a customer to encourage that customer to pay by cash or similar means instead of a credit card for purchasing services or goods.

Arizona

There are no regulations in the state of Arizona that prohibits a merchant from offering a cash discount to a customer to encourage that customer to pay by cash or similar means instead of a credit card for purchasing services or goods.

Arkansas

There are no regulations in the state of Arkansas that prohibits a merchant from offering a cash discount to a customer to encourage that customer to pay by cash or similar means instead of a credit card for purchasing services or goods.

California

Any provision in a contract between a card issuer and a retailer which has the effect of prohibiting the retailer from offering price discounts or from charging a different and lower price to customers who pay for goods or services by cash instead of by credit card is contrary to public policy and void.

Colorado

A discount offered by a seller or lessor for the purpose of inducing payment by cash, check, or other means not involving the use of a seller or lender credit card shall not constitute a finance charge if such discount is offered to all prospective buyers and its availability is disclosed to all prospective buyers clearly and conspicuously in accordance with regulations of the administrator.

Connecticut

Nothing in this section shall prohibit any seller from offering a discount to a buyer to induce such buyer to pay by cash, debit card, check or similar means rather than by credit card. In furtherance of the legislative findings contained in §42-133j, no existing or future contract or agreement shall prohibit a gasoline retailer or distributor from offering a discount to a buyer based upon the method of payment by such buyer for such gasoline. Any provision in such contract or agreement prohibiting such retailer or distributor from offering such discount is void and without effect as contrary to public policy.

Delaware

There are no regulations in the state of Delaware that prohibits a merchant from offering a cash discount to a customer to encourage that customer to pay by cash or similar means instead of a credit card for purchasing services or goods.

District Of Columbia

There are no regulations in the state of District of Columbia that prohibits a merchant from offering a cash discount to a customer to encourage that customer to pay by cash or similar means instead of a credit card for purchasing services or goods.

Florida

There are no regulations in the state of Florida that prohibits a merchant from offering a cash discount to a customer to encourage that customer to pay by cash or similar means instead of a credit card for purchasing services or goods.
Note the last sentence of Fla. Stat. §501.0117(1) which provides that the ban does not apply to cash discount:
“… This section does not apply to the offering of a discount for the purpose of inducing payment by cash, check, or other means not involving the use of a credit card, if the discount is offered to all prospective customers.”

Georgia

There are no regulations in the state of Georgia that prohibits a merchant from offering a cash discount to a customer to encourage that customer to pay by cash or similar means instead of a credit card for purchasing services or goods.

Hawaii

There are no regulations in the state of Hawaii that prohibits a merchant from offering a cash discount to a customer to encourage that customer to pay by cash or similar means instead of a credit card for purchasing services or goods.

Idaho

There are no regulations in the state of Idaho that prohibits a merchant from offering a cash discount to a customer to encourage that customer to pay by cash or similar means instead of a credit card for purchasing services or goods.

Illinois

Indiana

Iowa

Kansas

Kentucky

Louisiana

Maine

Surcharge prohibited. A seller in a sales transaction may not impose a surcharge on a cardholder who elects to use a credit card or debit card in lieu of payment by cash, check or similar means. For purposes of this section, “surcharge” means any means of increasing the regular price to a cardholder that is not imposed on a customer paying by cash, check or similar means. A discount or reduction from the regular price is not a surcharge.

Maryland

Notwithstanding any agreement to the contrary between a seller and the issuer of a credit card, the seller is permitted to offer a cash discount to consumers who pay cash instead of using the credit card.

Massachusetts

(a)(1) With respect to a credit card which may be used for extensions of credit in sales transactions in which the seller is a person other than the card issuer, the card issuer may not, by contract or otherwise, prohibit any such seller from offering a discount to a cardholder to induce the cardholder to pay cash, check or similar means rather than use a credit card.
(b) With respect to any sales transaction, any discount from the regular price offered by the seller for the purpose of inducing payment by cash, check or other means not involving the use of an open-end-credit plan or a credit card shall not constitute a finance charge under section four if such discount is offered to all prospective buyers and its availability is disclosed clearly and conspicuously.

Michigan

There are no regulations in the state of Michigan that prohibits a merchant from offering a cash discount to a customer to encourage that customer to pay by cash or similar means instead of a credit card for purchasing services or goods.

Minnesota

There are no regulations in the state of Minnesota that prohibits a merchant from offering a cash discount to a customer to encourage that customer to pay by cash or similar means instead of a credit card for purchasing services or goods.

Mississippi

There are no regulations in the state of Mississippi that prohibits a merchant from offering a cash discount to a customer to encourage that customer to pay by cash or similar means instead of a credit card for purchasing services or goods

Missouri

Montana

Nebraska

There are no regulations in the state of Nebraska that prohibits a merchant from offering a cash discount to a customer to encourage that customer to pay by cash or similar means instead of a credit card for purchasing services or goods.

Nevada

No issuer may, by contract or otherwise, prohibit a merchant from offering a discount to a customer to induce the customer to pay by cash, check or similar means rather than by use of a credit card or a credit card account for the purchase of goods or services.

New Hampshire

There are no regulations in the state of New Hampshire that prohibits a merchant from offering a cash discount to a customer to encourage that customer to pay by cash or similar means instead of a credit card for purchasing services or goods.

New Jersey

New Mexico

New York

There are no regulations in the state of New York that prohibits a merchant from offering a cash discount to a customer to encourage that customer to pay by cash or similar means instead of a credit card for purchasing services or goods.
(3) The NY Court of Appeals concluded that if a merchant posts its prices and charges lower prices to cash customers, it must post the price charged to credit card customers. As a result, the court also concluded that the law prohibits a merchant from using a “single-sticker-price” scheme in which a merchant posts a single cash price for its goods and services but indicates an additional amount is added for credit card customers

North Carolina

There are no regulations in the state of North Carolina that prohibits a merchant from offering a cash discount to a customer to encourage that customer to pay by cash or similar means instead of a credit card for purchasing services or goods.

North Dakota

There are no regulations in the state of North Dakota that prohibits a merchant from offering a cash discount to a customer to encourage that customer to pay by cash or similar means instead of a credit card for purchasing services or goods.

Ohio

There are no regulations in the state of Ohio that prohibits a merchant from offering a cash discount to a customer to encourage that customer to pay by cash or similar means instead of a credit card for purchasing services or goods.

Oklahoma

With respect to all sales transactions, a discount which a seller offers, allows or otherwise makes available for the purpose of inducing payment by cash, check or similar means rather than by use of an open-end credit card account shall not constitute a credit service charge as determined under §2-109 of this title if the discount is offered to all prospective buyers clearly and conspicuously in accordance with regulations of the administrator of Consumer Affairs.

Oregon

There are no regulations in the state of Oregon that prohibits a merchant from offering a cash discount to a customer to encourage that customer to pay by cash or similar means instead of a credit card for purchasing

Pennsylvania

There are no regulations in the state of Pennsylvania that prohibits a merchant from offering a cash discount to a customer to encourage that customer to pay by cash or similar means instead of a credit card for purchasing services or goods.

Rhode Island

There are no regulations in the state of Rhode Island that prohibits a merchant from offering a cash discount to a customer to encourage that customer to pay by cash or similar means instead of a credit card for purchasing services or goods.

South Carolina

South Dakota

There are no regulations in the state of South Dakota that prohibits a merchant from offering a cash discount to a customer to encourage that customer to pay by cash or similar means instead of a credit card for purchasing services or goods.

Tennessee

There are no regulations in the state of Tennessee that prohibits a merchant from offering a cash discount to a customer to encourage that customer to pay by cash or similar means instead of a credit card for purchasing services or goods.

Texas

There are no regulations in the state of Texas that prohibits a merchant from offering a cash discount to a customer to encourage that customer to pay by cash or similar means instead of a credit card for purchasing services or goods.

Utah

There are no regulations in the state of Utah that prohibits a merchant from offering a cash discount to a customer to encourage that customer to pay by cash or similar means instead of a credit card for purchasing services or goods.

Vermont

There are no regulations in the state of Vermont that prohibits a merchant from offering a cash discount to a customer to encourage that customer to pay by cash or similar means instead of a credit card for purchasing services or goods.

Virginia

There are no regulations in the state of Virginia that prohibits a merchant from offering a cash discount to a customer to encourage that customer to pay by cash or similar means instead of a credit card for purchasing services or goods.

Washington

(1) Nothing contained in this chapter shall be deemed to limit any charge made by an assignee of a retail installment contract or charge agreement to the seller-assignor upon the sale, transfer, assignment, or discount of the contract or agreement, notwithstanding retention by the assignee of recourse rights and notwithstanding duties retained by the assignee to service delinquencies, perform service or warranty agreements regarding the property which is the subject matter of the assigned or discounted contracts or charge agreements, or to do or perform any other duty with respect to the account or contract assigned or the subject matter of such account or contract.
(2) No agreement between a credit card issuing bank and retailer shall prohibit the retailer from granting general discounts for the payment of cash, not in excess of the percentage allowed by Regulation Z, the Federal Truth in Lending Act.

West Virginia

There are no regulations in the state of West Virginia that prohibits a merchant from offering a cash discount to a customer to encourage that customer to pay by cash or similar means instead of a credit card for purchasing services or goods.

Wisconsin

No credit card issuer may, by contract or otherwise, prohibit a merchant from offering a discount to a customer to induce the customer to pay by cash, check, or similar means, rather than by use of a credit card or its underlying account, for the purchase of goods or services.

Wyoming

(a) “Credit service charge” means the sum of:
(i) All charges payable directly or indirectly by the buyer and imposed directly or indirectly by the seller as an incident to the extension of credit, including any of the following types of charges which are applicable: time price differential, service, carrying or other charge however denominated, premium or other charge for any guarantee or insurance protecting the seller against the buyer`s default or other credit loss; and (ii) Charges incurred for investigating the collateral or credit-worthiness of the buyer or for commissions or brokerage for obtaining the credit, irrespective of the person to whom the charges are paid or payable, unless the seller had no notice of the charges when the credit was granted.
(b) Credit service charge does not include: (i) Charges as a result of default; (ii) Additional charges pursuant to W.S. 40-14-213; (iii) Delinquency charges specified by W.S. 40-14-214; (iv) Deferral charges pursuant to W.S. 40-14-215; (v) A discount not in excess of five percent offered by a seller for purposes of inducing payment by cash, check or other means not involving the use of a seller or lender credit card, if the discount is offered to all prospective buyers and its availability is disclosed clearly and conspicuously in accordance with regulations of the administrator; or(vi) Reasonable credit application fees whether or not credit is extended