Video

---

What are service fees? 

Merchants are permitted to offset the cost of credit card acceptance by adding in a service fee to customers who pay with a credit card.

What is a Cash Discount?

Any customer who pays with alternative forms of payments, such as cash, debit or gift cards, will not be charged a service fee. 

What fees does this program help eliminate? 

Cost of acceptance is interchange, dues and assessments and any authorization fees. Additional fees such as statement fees, annual fees, or PCI compliance fees are not included in the cost of acceptance. 

Can a business make money by cash discounts or service fees? 

Cash discounts and service fee programs are not designed to be a revenue stream for businesses, but an appropriate and balanced way to offset processing costs. 

Can service fees be applied to pre-paid or debit cards? 

Service fees for PIN based or pre-paid transactions are not allowed.

Are cash discounts and service fee programs available in all 50 states? 

Merchants in 40 U.S. states are permitted to offset the cost of credit card acceptance by adding in a service fee. 

Merchants in the remaining 10 states are unable to apply service fees, but can offer a cash discount: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas

How does a customer know if they are paying a cash discount or service fee? 

Merchants must display proper signage at the point of purchase. Freedom provides compliant signage free of charge. The cash discount and service fee are shown on the customer’s receipt.

How much of a cash discount or servcice fee is offered? 

The typical service fee amount is equal to the average effective interchange rate plus applicable network fees and cannot exceed 4%.