1. Cash Discount vs. Surcharge — Important Distinctions
Card brands and state regulators draw a clear line between cash discounts and surcharges:
Cash Discount (Allowed in All States)

 

A cash discount is a reduction in price offered to customers who pay with cash or an equivalent method.

 

To qualify as a true cash discount under Visa/Mastercard rules:
•     The posted price must be the card price
•     The discount must be applied only when the customer pays with cash
•     The discount must be clearly disclosed before checkout

 

Surcharge (Restricted and Not Allowed by All Brands)
A surcharge is an additional fee added to the posted price when a customer pays with a credit card.
Important compliance notes:
•     Surcharges may only be applied to credit cards — never debit cards, even when run “as credit.”
•     Visa, Mastercard, Discover, and AmEx each have their own rules, and not all brands permit surcharging in all contexts.
•     Some states restrict or prohibit surcharging.
•     Surcharging requires brand‑specific signage, caps on surcharge amounts, and advance registration with certain card brands.

 

New Morrow Solutions LLC does not determine surcharge eligibility; this is governed by the processor, card brands, and applicable law.

 

2. “0% Processing Fees” — What This Means
The “0% processing fee” language on this site refers to a cash‑discount‑based dual‑pricing program, not a surcharge program.

 

Under this model:
•     The card price is the standard posted price
•     A cash discount is applied at checkout when the customer pays with cash
•     The merchant uses the cash‑discount differential to offset processing costs

 

This structure is permitted under card‑brand rules only when implemented correctly and with required signage.

 

3. Required Customer‑Facing Signage
Visa, Mastercard, and state consumer‑protection laws require clear, conspicuous signage that explains:
•     The business uses a dual‑pricing or cash‑discount model
•     The posted price is the card price
•     A discount is available for cash payments
•     Any additional fees or differentials must be disclosed before the transaction begins

 

Signage must be placed:
•     At the entrance
•     At the point of sale
•     On or near the payment terminal

 

Failure to display compliant signage may result in chargebacks, fines, or program termination by the processor or card brands.

 

4. Card‑Brand Rules That Apply to Merchants
Merchants using dual pricing or surcharging must comply with:
•     Visa U.S. Merchant Rules
•     Mastercard Rules for Merchants
•     Discover Network Rules
•     American Express Merchant Regulations
•     State‑level consumer‑protection laws
•     Federal Truth‑in‑Lending Act (TILA) disclosure requirements

 

These rules govern:
•     How prices must be displayed
•     How discounts or fees must be communicated
•     Caps on surcharge amounts
•     Prohibitions on surcharging debit or prepaid cards
•     Requirements for consistent treatment across card brands

 

New Morrow Solutions LLC provides guidance but does not enforce or interpret card‑brand rules; compliance is the responsibility of the merchant and the processor.

 

5. Not All Card Brands Allow Surcharging
While cash discounting is permitted nationwide, surcharging is not universally allowed:
•     Some card brands restrict surcharging
•     Some states prohibit or limit surcharging
•     Debit and prepaid cards cannot be surcharged under any circumstances
•     Certain merchant categories may face additional restrictions

 

Merchants must confirm surcharge eligibility with their processor and review all applicable rules.

 

6. Independent ISO Disclosure
New Morrow Solutions LLC is an independent sales office and is not owned by, not controlled by, and not a subsidiary of:
•     Fiserv
•     CardConnect
•     PaybotX
•     Payarc
•     Paybotic
•     Any of their parents, affiliates, or related entities

 

All underwriting, pricing, compliance enforcement, and transaction processing are performed solely by the respective payment processor or sponsoring bank.

 

7. Merchant Responsibility for Compliance
Merchants using a cash‑discount or surcharge program are responsible for:
•     Reviewing and following all card‑brand rules
•     Posting required signage
•     Ensuring pricing displays comply with state and federal law
•     Confirming surcharge eligibility with their processor
•     Maintaining consistent and transparent customer communication

 

New Morrow Solutions LLC provides education and onboarding support but does not provide legal advice and does not guarantee compliance.