Businesses Might Offer Discount to Customers Who Pay Cash
Kim Posey, KDVR, Reporting
Businesses across the country are now trying to figure out if they will charge customers who pay with credit cards more than customers who pay with cash.
Those credit card transaction fees can cost businesses a lot of money.
Now after a tentative settlement with MasterCard and Visa, businesses will have the option of offering a discount to cash-paying customers and a higher price to credit card customers.
Kroger, the parent company of King Soopers, is one company considering the idea, although no decision has been made.
Mac Clouse, a professor of finance at Daniels College of Business at DU, says he expects this to be a trend. “I think we are going to see more businesses asking for cash,” Clouse said. “If you don’t want to pay cash, you are going to have to pay a higher price.”
Several states, including Colorado, prohibit credit card surcharges. But retailers are allowed to offer cash discounts.