Cash Discount vs Surcharge Calculator
Same money, different advertised price.
Surcharging and cash discounting are regulated differently and the distinction is legal, not cosmetic — but the rules vary by country and by US state, and card scheme rules apply on top. Take advice before implementing either.
Recovered per card order
$6.28
$4,636 a month at 82% card share
Both models leave every customer paying the same amount — the difference is entirely in which price is advertised. That is not a technicality: a cash discount is permitted in many places where a surcharge is banned, because the advertised price is the higher one and the discount is a genuine reduction. Framing also matters commercially, since a surcharge reads as a penalty and a discount as a reward.
How the Cash Discount vs Surcharge Calculator works
Both models leave every customer paying exactly the same amount. The only difference is which price is on the shelf — and that difference is legal, not cosmetic, because a discount off a higher advertised price is permitted in many places where a surcharge is banned.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
What is the difference?
A surcharge adds to the advertised price for card payments. A cash discount raises the advertised price and takes an amount off for cash. The customer pays the same either way; only the reference price changes.
Why is a cash discount more often permitted?
Because regulators generally object to a charge appearing on top of an advertised price, not to a genuine discount off it. The advertised price under a cash discount programme is the one everybody can pay.
Which converts better?
The discount, consistently. A surcharge reads as a penalty applied at the worst possible moment; a discount reads as a reward. The behavioural literature on this is unusually one-sided.
Are there catches?
Yes — the higher shelf price makes you look more expensive in comparison shopping, where nobody sees the discount. And card scheme rules still apply to how any dual pricing is displayed.