Processing options

Find the credit card processing structure that fits.

A café with lots of small tickets, a contractor sending large invoices, and a salon with repeat clients may each be best served by a different structure. Here’s how the three compare, in plain language.

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How processing costs are handledIllustrative*

Lower Your CostsTraditional

How processing costs are handled

Business ~$1,500/mo*

Business absorbs the illustrated processing cost.

Share the CostSplit Cash Discount

How processing costs are handled

Business ~$750*Card pricing ~$750*

Illustrative split only.

Maximize Your SavingsFull Cash Discount

How processing costs are handled

BusinessCard pricing

Potentially ~$0* of the illustrated processing cost absorbed by the business.

*Illustrative: $50,000/month in card sales at a 3% processing cost.

At a glance

Three structures, one table.

At-a-glance comparison of Traditional, Split Cash Discount, and Full Cash Discount
	Traditional Lower Your Costs	Split Cash Discount Share the Cost	Full Cash Discount Maximize Your Savings
Structure	Traditional processing	Split Cash Discount	Full Cash Discount
Who absorbs the cost	The merchant	Shared by merchant and posted card price	Posted card price accounts for applicable cost
Price customers see	Same price for everyone	Card price with a partial adjustment; cash discount	Card price; cash discount
Signage & receipts	No change	Required, compliant	Required, compliant
Goal	Lower your costs	Share the cost, softer pricing change	Maximize savings: substantially reduce or potentially offset
Illustrative business cost*	~$1,500/mo (~$18,000/yr)	~$750/mo (~$9,000/yr)	Potentially ~$0 of the illustrated cost

Under a cash discount program, customers who pay by card see a non-cash adjustment (the posted card price), and customers who pay cash receive a discount. Cash discount and surcharge programs are subject to card-brand rules and California law (including Cal. Civ. Code §1748.1 and the state’s Honest Pricing Law). A compliance review is recommended before any program goes live. This isn’t legal advice.

01 · TRADITIONAL

Lower Your Costs

Keep customer pricing unchanged. (Lower It)

How processing costs are handled

Business ~$1,500/mo*

Business absorbs the illustrated processing cost.

Hypothetical example

$50,000/month in card sales at an illustrative 3% processing cost = ~$1,500/month, or ~$18,000/year, absorbed by the business.* The review looks for lower rates, unnecessary fees, and a lower overall processing expense; how much room there is depends on your current setup.

Who absorbs the cost: You, the merchant, the same as today.
How it works: Customers pay the same price however they pay. We review your pricing model (flat-rate, tiered, or interchange-plus), your markup, per-transaction and monthly fees, and equipment costs, then look for a lower-cost structure.
Advantages: No change to customer pricing, signage, or checkout. Familiar to customers and staff. Can still reduce cost if your current structure has room.
Considerations: You still pay the full cost of acceptance, and any improvement depends on your current setup, card mix, and transaction types. Sometimes your current pricing is already competitive, and we’ll tell you.
Who it may fit: Businesses where customers are price-sensitive, competitors don’t use cash discounting, or the owner simply prefers one price.

03 · FULL CASH DISCOUNTMaximum savings

Maximize Your Savings

Our maximum-savings option. (Shift It)

How processing costs are handled

BusinessCard pricing

Potentially ~$0* of the illustrated processing cost absorbed by the business.

Hypothetical example

Same $50,000/month at 3% (~$1,500/month). Posted card pricing accounts for the applicable processing cost and cash customers receive a discount: potential savings of up to ~$1,500/month, or up to ~$18,000/year, with the business potentially absorbing ~$0 of the illustrated processing cost.* The actual card-price adjustment and any remaining fees depend on the approved program.

Who absorbs the cost: The posted card price accounts for the applicable processing cost. Cash customers receive a discount.
How it works: Prices are posted at the card price, and customers who pay cash receive a discount. Depending on the approved program and terms, your processing cost may be substantially reduced or potentially offset.
Advantages: Potentially the largest reduction in your processing cost, and more predictable month to month.
Considerations: Card-paying customers see the full adjustment, so clear, compliant signage and receipts are essential. It may not suit every industry or customer base (some device and program options are restricted for medical accounts). Program terms, card-brand rules, and California requirements apply.
Who it may fit: Higher-volume businesses where cost recovery matters most and customers are used to cash discount pricing, which is common in some restaurant, auto, and service categories.

*Examples are for illustration only and assume $50,000 in monthly card sales and a 3% processing cost. Actual rates, savings, pricing adjustments, program structure, card mix, transaction volume, and eligibility vary. Cash Discount and related programs are subject to applicable laws, card-brand rules, and approved program terms.

How Much Could Your Business Save?

Upload a recent merchant processing statement and we’ll compare your current setup against your available options using your actual numbers.

Get My Free Savings Analysis No obligation. Just a clear look at what you’re paying today and where you may be able to save.

Which one fits you? Your statement will tell us.

Send one recent statement. Get your effective rate, a line-by-line fee breakdown, and Traditional, Split, and Full Cash Discount compared with your numbers. No cost, no obligation.

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Sample processing comparison

All three, same hypothetical business.

What the difference can look likeHypothetical example · $10,000/mo card volume

StructureIllustrated merchant costPer monthPer year

Current (hypothetical)3.50% effective rate

$350merchant cost / mo

—difference / yr

TraditionalLower It · hypothetical 2.75%

$275merchant cost / mo

$900difference / yr

Split Cash DiscountShare It · 1.75% / 1.75%

$175merchant cost / mo

$2,100difference / yr

Full Cash DiscountShift It · card pricing covers illustrated 3.50%

Potentially offset*merchant cost / mo

$4,200difference / yr

This is a hypothetical example, not a quote or a typical result. Differences are measured against the hypothetical 3.50% baseline above, not against a “typical” rate. *Under the illustrated Full Cash Discount, the posted card price accounts for the illustrated processing cost; this is not a zero-fee claim. Annual figures = monthly × 12 and assume constant volume, card mix, and pricing. Actual rates, fees, savings, Cash Discount structures, equipment terms, and approval are merchant-specific and subject to underwriting, program rules, card mix, transaction type, and applicable requirements.

Cash discount vs. surcharge

Not the same thing. Not interchangeable.

A surcharge adds a fee at checkout for paying by credit card. A cash discount posts the card price and gives customers who pay cash a discount. California treats these very differently.

California’s surcharge statute (Cal. Civ. Code §1748.1) and the Honest Pricing Law (SB 478) affect how prices must be displayed. Card brands have their own signage and receipt rules. Split and Full Cash Discount programs are only set up under approved program terms, after review. Rules change, and this isn’t legal advice; talk with a qualified advisor about your situation.

Beyond the countertop.

Through PaybotX, there are options for countertop and wireless terminals, POS systems, online payment gateways, and mobile payment apps, all subject to approval and program terms. Which one fits depends on how you take payments today.

In-person: countertop terminals, wireless handhelds, and POS bundles
Online & invoicing: payment gateways
On the go: mobile payment apps

What’s available through PaybotX

Processing options FAQ

Still deciding?

Common questions about choosing a structure.

Which option is best?

It depends on your volume, card mix, average ticket, customers, and goals. That’s why we start with your statement. There’s no single pricing model that’s right for every business.

Is a cash discount the same as a surcharge?

No. A surcharge is a fee added for paying by credit card. A cash discount program posts the card price and gives customers paying cash a discount. Rules differ by state and card brand, and California has specific rules, so any program is set up under approved program terms after review. This isn’t legal advice.

What does a card customer see under a cash discount program?

Customers who pay by card see a non-cash adjustment in the posted card price; customers who pay cash pay the cash price. Signage and receipts must be clear, and the program must follow card-brand rules and California law. A compliance review is recommended.

Will my customers be upset?

Some notice. Many don’t mind clear, honest signage. And some businesses decide Traditional is the better fit. We’ll talk through how your customers are likely to react.

Can I switch structures later?

Often, subject to program terms. Ask before you sign so you know the options.

Does a cash discount apply to debit cards?

It depends on the program setup and card-brand rules. We’ll walk through how your program would treat debit.

Free merchant statement review

Not sure which structure fits?

Send a recent statement and we’ll compare all three using your real numbers, not a hypothetical.

Book a Free Statement Review What’s included

Drew LutzkeBook a time drew@lutzkemerchserv.com