Surcharge vs Cash Discount Calculator

About this calculator

Merchants facing credit-card processing fees typically choose between two pricing strategies: a surcharge, which adds a fee on top of the listed price only for card payers, or a cash discount program, which posts a higher “regular” price and gives a discount to customers who pay cash. This calculator runs both scenarios against your price and fee percentages to show which one leaves you more net revenue per card sale after processing costs.

The two aren't just semantically different — they're regulated differently in many U.S. states and by card networks, with surcharges typically capped at the merchant's actual cost of acceptance (often around 3-4%) while cash discounts face fewer restrictions since the sticker price already reflects the higher amount. Retailers, restaurant owners, and small-business bookkeepers use this comparison to pick a compliant strategy that protects their margins without alienating card-paying customers.