Surcharge vs cash discount vs flat rate: which fits your business?
Flat Rate is one clear rate the business pays on every card sale. Surcharge keeps cash prices the same and adds a disclosed amount to eligible credit cards only, no more than your cost to accept the card. Cash Discount posts card-inclusive prices and gives cash and check customers about 3.5% off.
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Side by side
| Flat Rate | Surcharge | Cash Discount | |
|---|---|---|---|
| Who pays card cost | The business | Credit customers help cover it; the business pays on debit | Built into posted prices; cash and check pay less |
| Posted price | Unchanged | Cash price; surcharge added on eligible credit | Card-inclusive price |
| Debit & prepaid | Same rate as credit (card-present) | Never surcharged | Pay the posted price |
| Amount | 2.69% + $0.10 card-present | No more than your cost of acceptance, within card-brand caps | About 3.5% off for cash and check |
| Disclosure | None needed at the register | Signs at entry and point of sale; itemized on receipt | Clear cash and card prices |
| Often fits | Businesses that want no change for customers | High credit mix, larger tickets | Counters with posted prices and cash customers |
How to choose
- Want customers to see no change? Start with Flat Rate.
- Mostly credit cards and larger tickets? Compare Surcharge.
- Many cash or check customers and posted menu or shelf prices? Compare Cash Discount.
- Not sure? Compare all three on your own statement before deciding.
Nevada notes
In Nevada, a surcharge may not exceed the merchant’s cost of acceptance and must be posted and itemized, per the Attorney General. Nevada law (NRS 97A.210) says card issuers may not prohibit cash discounts. Read more in Is surcharging legal in Nevada?
Program pages: Flat Rate · Surcharge · Cash Discount
General information, not legal advice.
Common questions
What is the difference between a surcharge and a cash discount?
A surcharge keeps the cash price and adds a disclosed amount when a customer pays with eligible credit. A cash discount posts a card-inclusive price and gives customers who pay cash or check a discount (about 3.5% with CMS Card Services). They are separate programs with different rules.
Which program saves a business the most?
It depends on your card mix, ticket size and how you want prices to look. Surcharge and Cash Discount can lower what the business pays, but change how prices appear; Flat Rate changes nothing for customers. A statement review compares all three on your real numbers.
Can I surcharge debit cards?
No. Debit and prepaid cards are never surcharged.
What is the CMS Flat Rate?
CMS Flat Rate is 2.69% + $0.10 for card-present credit and debit, and 3.39% + $0.20 for card-not-present when it applies.
Are these programs available in Nevada?
Yes. All three are available in Nevada after CMS Card Services reviews your setup. Surcharges in Nevada may not exceed your cost of acceptance and must be posted and itemized, per Nevada Attorney General guidance.
See your own numbers
Upload a recent processing statement and CMS Card Services compares Flat Rate, Surcharge and Cash Discount on your real volume. Free, no obligation; final pricing is confirmed before activation.