Cash discounts, while still rare, are up over 60% from 2015. Here's how much you can save
Are Cash Discounts the New Trend?
Cash discounts have increased by over 60% since 2015, with businesses offering 2% to 4% savings for customers who pay with cash instead of credit cards. This trend is driven by the high fees merchants pay on credit card transactions. Although only 3% of cash payments in 2022 included a discount, the practice is expected to grow. Some businesses also impose surcharges on credit card purchases, making cash payments more appealing despite the shift towards less cash usage in recent years.
What percentage range of savings do consumers typically experience when opting for cash payments over credit card transactions according to experts?
According to experts, consumers typically experience a savings range of 2% to 4% when opting for cash payments over credit card transactions.
How has the percentage of cash payments with a discount changed from 2015 to 2022?
The percentage of cash payments with a discount has increased over 60% from 2015 to 2022. In 2015, 1.8% of all cash transactions had a discount, while in 2022, this share rose to 3% according to data from the Federal Reserve Bank of Atlanta. This indicates that while cash discounts are still relatively rare, they are becoming more common.