A cash discount program is a legal pricing structure where a business advertises standard card prices and offers an automatic discount—typically 3% to 4%—to customers who pay with cash or check, directly recovering processing fees at checkout. When configured with compliant point-of-sale (POS) software and clear point-of-entry signage, it eliminates up to 100% of credit card acceptance costs without violating payment card network rules or triggering regulatory penalties.

Quick Take

For small businesses operating on thin profit margins, credit card processing fees between 1.5% and 3.5% represent an unnecessary drain on net profits. A properly structured cash discount program protects your bottom line by passing processing costs to card-paying customers through standard listed prices while rewarding cash buyers with a line-item discount at the register. Unlike surcharging—which requires card network registration, prohibits debit card fees, and faces strict state restrictions—cash discounting is legal in all 50 states when implemented with proper point-of-sale disclosures and receipt line-item transparency.

Understanding Payment Processing Costs

Every credit card swipe, chip insert, or contactless tap triggers a sequence of interchange, assessment, and merchant processor fees. Interchange fees, set by networks like Visa and Mastercard and paid to card-issuing banks, make up the vast majority of processing overhead. When combined with processor markups, a typical retail or service business pays an effective processing rate between 2.2% and 3.8% depending on card types, reward tier structures, and transaction methods.

For high-frequency or mobile businesses—such as food trucks, farm markets, and field service contractors—these fractional fees accumulate rapidly into thousands of dollars in monthly overhead. For mobile vendors, pop-up markets, and field service businesses, adopting flexible mobile credit card processing services helps track real-time transaction margins and automate cash discount calculations directly on mobile hardware. Lowering these costs requires understanding how your processing pricing model works before choosing a cost-recovery strategy like cash discounting.

What Is a Cash Discount Program?

A cash discount program is a pricing mechanism that offers a lower price to customers paying with cash, checks, or store-branded gift cards instead of electronic payment cards. The core mechanical difference between cash discounting and other pricing adjustments lies in how base prices are displayed to the public:

• Base Listed Price: All shelf tags, menu boards, service quotes, and online price lists display the regular card price (for example, $10.40).
• Cash Transaction: At the register, the POS system automatically applies a cash discount (for example, $0.40), bringing the final price paid down to $10.00.
• Card Transaction: The customer pays the full listed base price of $10.40, which covers the underlying credit card processing fee.

Federal law under the Truth in Lending Act (15 U.S.C. § 1666f) explicitly protects the right of merchants to offer cash discounts to induce non-card payments, provided the discount is made available to all customers and disclosed clearly prior to purchase.

Cash Discount vs. Surcharge vs. Dual Pricing

Choosing the wrong fee-recovery model or mislabeling checkout fees can lead to severe processor fines and merchant account cancellation. Business owners must distinguish between three distinct pricing models:

Under the Durbin Amendment under Regulation II, merchants are strictly barred from imposing surcharges on debit card transactions, even when the customer selects “credit” at the terminal. Applying a surcharge to a debit card is one of the most common compliance violations recorded by card brand auditors.

Furthermore, Visa’s merchant compliance standards state that if a merchant advertises a lower base price on shelf tags and then adds a fee line item at the terminal for card users—regardless of whether the business labels it a “service fee,” “technology fee,” or “non-cash adjustment”—it is legally classified as a surcharge. Misrepresenting a surcharge as a cash discount risks immediate fines starting at $1,000 per occurrence from card brand compliance teams.

How to Set Up a Compliant Cash Discount Program

Implementing a fully compliant cash discount program requires updating your hardware, software, signage, and customer service workflows in lockstep.

Step 1: Audit Processing Rates and POS Hardware

Before launching any new pricing model, consult with your current payment processor to confirm whether their software supports automated dual pricing and line-item cash discount receipts. Review your average monthly processing statement to determine your effective rate. Select a discount percentage (typically between 3% and 4%) that accurately covers your total processing overhead without overcharging customers.

Step 2: Configure Terminal Software and Receipt Itemization

Your POS terminal must be programmed to handle the discount calculations automatically. Ensure your software meets the following conditions:

• Calculates the discount before tax to avoid improper tax collection.
• Displays the original card price, the discount amount, and the final cash total on the terminal screen.
• Prints receipts clearly itemizing the regular card price alongside the cash discount deduction line.

Step 3: Install Required Point-of-Sale Disclosures

Transparency is essential for legal compliance and customer retention. According to credit card surcharge regulations and cash discount framework rules, disclosures must be posted prominently where customers make purchase decisions:

• At all public business entrances.
• At each checkout terminal, register, or counter.
• On printed menus, digital price displays, and online order portals.

Signage should use positive language, such as: “All advertised prices reflect our standard card pricing. As a courtesy to our cash-paying customers, we offer a 4% discount at checkout when paying with cash or check.”

Step 4: Train Staff on Customer Communication

Frontline staff should be prepared to explain the cash discount model clearly and politely. Frame the program as a reward for cash buyers rather than a punishment for card users. Staff should emphasize that customers who pay with cash save money on every transaction, while cardholders pay the standard listed tag price.

Common Misconceptions and Compliance Risks

Many small businesses inadvertently commit card network violations by purchasing turnkey “cash discount” packages from unverified vendors. Avoid these critical traps:

• The “Non-Cash Adjustment” Trap: Automatically adding a 4% “service fee” at the register to a base cash price is a surcharge, not a cash discount. Calling it a “non-cash adjustment” on receipts does not bypass card brand rules.
• Failure to Update Shelf Tags: If your shelf price or menu lists $10.00, but the customer’s receipt shows a $10.40 charge when using a card, you have surcharged the customer. All listed prices must reflect the card price.
• Ignoring Card Brand Audits: Both Visa and Mastercard run active compliance auditing programs. Under Visa merchant violation remedies, businesses found operating non-compliant fee programs receive warning notices requiring remediation within 30 days, followed by mounting financial penalties if uncorrected.
• Overcharging Surcharges: For businesses choosing a surcharge model instead of a cash discount, Mastercard merchant surcharge rules explicitly cap credit card surcharges at the merchant’s actual cost of acceptance or 3% to 4%, whichever is lower.

Where Cash Discounting Has Limits

While cash discounting protects profit margins for many businesses, it is not universally optimal for every business model:

• High-Ticket B2B Transactions: B2B buyers relying on corporate procurement cards rarely carry large amounts of cash. A 3.5% price difference on a $20,000 order may create sales friction or lead clients to demand invoice net-terms instead. Exploring an interchange-plus pricing guide may yield lower fees without altering customer checkout workflows.
• E-Commerce and Card-Not-Present Environments: Implementing cash discounts online requires specialized payment gateways capable of supporting alternative payment methods like ACH bank transfers or digital wallets at checkout.
• Premium or Luxury Retail: Luxury brands often avoid cash discount signage at checkout, choosing instead to fold processing overhead into standard margin pricing to preserve high-end brand perception.

Key Takeaways

• Cash discount programs allow merchants to offer a discount off the standard card price to customers who pay with cash, recovering credit card processing costs legally.
• Cash discounting is legal in all 50 states and applies to both debit and credit card transactions when structured correctly.
• All shelf pricing, menus, and signage must display the card price as the standard price, with the cash discount subtracted at checkout.
• Adding a fee at checkout to a lower listed price is legally classified as a surcharge, triggering strict network limits and debit card prohibitions.
• Compliant point-of-sale hardware and staff training are essential to avoid card brand fines and maintain customer trust.

Frequently Asked Questions

Regions such as Galicia, Asturias, Castile and León, Madrid, Aragon, Catalonia, the Valencian Community, and the Balearic Islands experienced the path of totality, while the rest of the country saw a partial eclipse.

The solar corona glows as the moon completely blocks the sun during the totality phase, as seen from San Asensio in the La Rioja region.

Photograph: Ander Gillenea/Getty Images

The event lasted about four and a half hours, while the total darkening of the sky lasted just under two minutes, allowing various space agencies to conduct scientific experiments along the path of totality.

Fans of Real Madrid watch the solar eclipse through special glasses before the Teresa Herrera Trophy match between RC Deportivo A Coruña and Real Madrid at Riazor Stadium.

Advertisement

Photograph: José Manuel Álvarez Rey/Getty Images

One of the most notable projects involved a NASA mission tracking the moon’s shadow using a WB-57 high-altitude research aircraft that flew at 50,000 feet. A team of scientists sought to gather new data on the dynamics of the solar corona—the sun’s outermost atmosphere—which can only be studied in detail during total eclipses.

Strands is the NYT’s latest word game after the likes of Wordle, Spelling Bee and Connections – and it’s great fun. It can be difficult, though, so read on for my Strands hints.

Want more word-based fun? Then check out my NYT Connections today and Quordle today pages for hints and answers for those games, and Marc’s Wordle today page for the original viral word game.

The revelation that Apple’s iCloud Private Relay feature hasn’t been as secure as Apple says has spawned a lawsuit against the iPhone maker.

Last week, a blog post by Talal Haj Bakry and Tommy Mysk exposed a vulnerability in how iCloud Private Relay, in some circumstances, doesn’t shield a customer’s IP address, which is the entire purpose of the feature. Even when it’s enabled, their information can be exposed when using a passkey to sign in or when a website uses two methods (DNS prefetching and WebTransport) to load data faster.

In a complaint filed by Clarkson Law Firm on Aug. 6, plaintiff Edward Rickman says he subscribed to iCloud Plus believing that iCloud Private Relay would hide his IP address and Safari browsing activity.

“Instead, Apple delivered a system that recreates through its own credential service the precise harm Apple told the world it had made impossible,” reads the complaint, which seeks class action status.

The lawsuit also seeks an injunction against Apple requiring it to change its business practices to mitigate the risk of consumer deception, as well as monetary relief and attorneys’ fees.

An Apple representative didn’t immediately respond to a request for comment.

A core component of the lawsuit is that iCloud Private Relay is a paid service of iCloud Plus, which costs between 99 cents and $60 per month. The feature is available only if you’re subscribed to iCloud Plus, not the basic iCloud service.

Also key is the fact that Apple has advertised for years that iCloud Private Relay is a safe way to browse the web and avoid the types of tracking that services such as Facebook use to connect people’s browsing habits and assemble profiles on them that can be monetized.

“Apple built its entire brand on the promise that it would protect its users’ privacy when no other company would,” Tim Giordano, a partner at Clarkson Law Firm, said in a statement. “For Apple’s iCloud users to now learn that for years they were paying Apple a premium for a protection that simply didn’t work, exposing them to the very tracking, profiling and targeting Apple warned them about, is an outrageous violation and betrayal of consumer trust and law.”

Clarkson recently won a $250 million settlement from Apple over the company’s marketing of AI features for the iPhone 16 Pro that were never delivered.

The researchers who discovered the flaw set up a website that lets anyone check whether iCloud Private Relay is protecting their IP address. They say they released the information publicly rather than first alerting Apple because of the company’s lengthy review process.

In an email to CNET, Mysk wrote, “If we had a better experience with the Apple Security Bounty program that would make us feel confident the issue would be addressed promptly for the benefit of iCloud Private Relay users as well as Psylo users, we would have reported this iCloud Private Relay issue to Apple without having to release a Psylo update addressing the issue, and as a result having to disclose it to our users.” Psylo is the developers’ privacy-focused web browsing app.

Jeff Carlson

Senior Writer

Jeff Carlson writes about mobile technology at CNET, from cellular phone plans to devices and emerging technology.

See full bio

Advertisement

All four Pixel 11 models run Google’s Tensor G6 alongside a new Titan M3 security coprocessor that adopts NIST’s post-quantum cryptography standards, a first for a Google phone. The chip claims 25% faster browsing and 20% better power efficiency, with a TPU carrying 50% more compute.

Every Pixel 11 ships with Google’s new Tensor G6, but the more interesting silicon sits next to it. A new Titan M3 security coprocessor adopts the post-quantum cryptography standards set by the US National Institute of Standards and Technology. Google says the Pixel 11 is its first phone to meet them.

The chip handles quantum-safe secure boot and runs Trusty, Google’s trusted execution environment, across all four models. Google describes the protection as being against “emerging, highly advanced digital attacks,” and says Titan M3 holds Common Criteria certification at the level used for SIM and bank cards.

No quantum computer can break current encryption. The reason to ship this now is that data stolen today can be kept until one can, a problem the industry calls harvest now, decrypt later. TNW has written before about why this is an inevitable threat rather than a distant one.

Governments are pushing the timeline from the other direction. The White House has signed orders calling for a useful quantum computer by 2028, which puts a date on work that vendors had been treating as open-ended.

The performance side is more ordinary. Google claims the Tensor G6 delivers 25% faster browsing and 15% faster app loading than the Tensor G5, with up to 20% better power efficiency, the complaint that has dogged every previous Tensor.

Its TPU carries 50% more compute and higher memory bandwidth. That runs Gemini Nano on device, which Google says now executes background work up to 3.5 times faster while using 3.5 times less energy. The same silicon drives 120x Pro Zoom on the Pro models, 4K portrait video and an Instant Night Sight that captures up to 4.5 times faster.

Google has not published the manufacturing process or the core configuration. Benchmarks against Qualcomm and Apple silicon remain the weak point, and nothing announced suggests that changes this year.

Pricing did land. The Pixel 11 starts at $899, the Pro at $1,099, the Pro XL at $1,299 and the Pro Fold at $1,899, with the 128GB tier dropped, confirming the increase Google signalled in July as memory prices climbed.

Insta360 just launched the X6, and the company is treating it like a full replacement for the gear most people carry on trips, rides, and everyday outings. One compact body now handles full 360 capture, locked-on subject tracking in flat video, and single-lens action shooting. Switch between the three with a tap. The camera then analyzes the footage on its own and delivers finished clips before you reach for your phone.

Dual custom Sony sensors are at the heart of this upgrade, with each 1.1-inch sensor organized in a square setup, providing a full one-inch equivalent when working in 360 mode. This configuration is significant since it gives you 33 percent more sensor area to work with than the preceding X5. That’s nearly four times the quantity of light you can capture in each shot. Low-light and high-contrast scenes will look much better. AdaptiveTone 2.0 now meters the two lenses separately, allowing it to draw two exposures every frame, which helps to extend the dynamic range without requiring any human adjustments. There are also two ambient light sensors that will help to clean up nite video, minimizing flicker and making things appear smoother.

Insta360 X6-8K 360 Camera with 1/1.1” Sensors

• DUAL 1/1.1″ SENSORS & TRIPLE AI CHIP SYSTEM: Custom-built dual 1/1.1″ square sensors deliver unprecedented 360 image quality. Combined with a triple…
• FLAGSHIP 8K50FPS 360 VIDEO: Hit record on our 360 action camera and capture your world in stunning native 8K50fps video. Every view, every highlight…
• IN-HOUSE AI MODEL FOR EFFORTLESS 360 EDITING: Insta360’s own AI model, built specifically for 360 editing. New AI Director edits your footage…

The processing power has been increased to match the larger sensors, with an 8-core 3.3 GHz processor built on a 4-nanometer technology driving the show, along with two dedicated imaging chips for good measure. That provides you a five-fold increase in computational capacity over the X5, and it will run more than twice as fast with 35% reduced power consumption. With this amount of headroom, you can run the camera in native 8K at 50 frames per second in full 360 and then reframe in whichever direction you choose. If you want something simpler, flat mode provides clear 4K with InstaFrame 2.0 subject tracking that locks onto people, dogs, or objects and keeps them centered. The single-lens action mode, on the other hand, offers 5K at 60 frames per second with a choice of 170 degree or 132 degree fields of view, or 4K at 120 frames per second in slow motion if desired.

The larger 2600mAh battery provides 140 minutes of continuous 8K @ 30 360 recording, which is a 51% increase over the X5. It charges to 80 percent in 24 minutes and can operate in temperatures as low as -20 degrees Celsius. The body is slightly shorter and more pocketable than the previous iteration, despite the larger sensors inside. The 2.32-inch OLED panel can reach 1200 nits while remaining legible in direct sunlight, and it also functions as a big record button when gloves are worn. The camera’s waterproofing has also been increased, allowing it to dive 20 meters without a case and 60 meters with the Invisible Dive Case Pro.

The windproof 360 microphones inside the body have been updated, and there’s also a new Hidden Engine Mic mode that separates engine sound while blocking out the wind for motorcycle riders. The Intelligent Audio Mode will also adapt automatically, eliminating the need for you to do anything. You now have the option of pairing two wireless transmitters simultaneously. Connectivity has also been sped up across the board, with Wi-Fi 6 moving files at a zippy 100MB per second wirelessly and USB 3.0 reaching 450MB per second via cable. If you’re afraid about dropping the connection, Bluetooth will reconnect in under a second.

The most significant change will likely be in how you edit your footage. The AI Director process takes place on the camera itself, as it pulls up your video, selects the best sections, and assembles whole clips for you, complete with framing, movement, cuts, music, and everything else, before neatening it up and delivering it to the app for sharing. Auto Edit 2.0 employs a sophisticated PanoMind model that has been trained on over 10,000 hours of real-world 360-degree film from travel, sports, diving, cycling, and everyday life.

Moments Pro on the cloud allows you to create more versions after you’ve established your subject, mood, style, and so on; simply choose your timings and it will do the rest for you. You also get ten-bit color and native Dolby Vision, as well as I-Log for heavy-duty color grading afterward. We’re talking a respectable 47 gigabytes of storage memory, so you can shoot to your heart’s content without having to worry about juggling SD cards.

The lenses themselves are five times more scratch resistant, and you can pop them in and out for sixty percent less. The magnetic mounts are fully compatible with all of your X5 and Ace gear, and you get over a hundred different accessories that can fit onto scooters, bikes, cars, and selfie sticks. A power selfie stick can give you an extra three hours of use out of your camera. Fast charge cases now have two batteries and card slots. You have the option of Midnight Black or Arctic White. The regular bundle now starts at $699.99 and includes the camera, cable, pouch, and lens cloth. Push the button to upgrade to the basics kit for an additional $100, which includes a backup battery, invisible stick, lens caps, charge case, and an extended warranty.

• The Trump-class battleship program could cost the Navy $275 billion total
• First battleship alone carries a staggering $23.4 billion price tag
• Each ship weighs 35,000 tons and packs hypersonic missiles, nuclear missiles, lasers, and more

A new US Congressional Budget Office report has estimated that the Navy’s proposed Trump-class battleship program could ultimately cost taxpayers $275 billion.

The first vessel alone is projected to cost $23.4 billion, roughly $6 billion more than the Navy’s initial estimate initially offered in December 2025.

Before anyone starts marching on Google headquarters waving torches and 4K Blu-ray cases, one important fact needs to be established: this happened to one reported customer, not millions. There is no evidence that Google suddenly removed The Lord of the Rings movies from huge numbers of digital libraries or that widespread deletions are occurring.

What we do have is a Reddit user who says the Extended Edition Trilogy they purchased through Google Play Store in 2022 disappeared from their library. Screenshots shared by the user appear to show Google Support confirming that the title had been removed from its catalog and that it could neither restore access nor provide a refund.

That distinction matters because this isn’t a mass deletion story. It is, however, a very good example of why the word “Buy” has become increasingly slippery in the digital era.

Related Reading:

You Bought It. Sort Of.

According to the customer, they paid for the films four years ago and reasonably expected them to remain available. Google Support reportedly explained that because the trilogy had been removed from its system and the transaction dated back to 2022, it could not restore the movies or issue a refund.

You can understand why someone might find that response less satisfying than walking barefoot to Mordor.

Google’s own current terms make the larger issue fairly clear. After purchasing content, customers receive a non-exclusive right to access and use it. Google also states that purchased content generally remains available only as long as Google retains the right to provide it. If those rights disappear, content or services are discontinued, or certain other conditions arise, Google can stop providing access to something you paid for.

That little “Buy” button suddenly feels considerably less permanent.

Digital movies are enormously convenient. I buy them and stream them, and most consumers are not going back to walls filled with thousands of discs.

I might not be the best example.

I own more than 3,700 movies on DVD, Blu-ray, 4K UHD Blu-ray and even LaserDisc, and there is a reason I have never viewed that collection as obsolete. If I purchase The Lord of the Rings on disc and put it on my shelf, Warner Bros. cannot remove it because a licensing agreement changes. Google cannot decide my copy is no longer in the catalog, and the internet can disappear for the evening without taking Gandalf with it.

Physical media has limitations. Discs can be damaged or lost, players eventually fail, and 3,700 movies require slightly more storage space than an app icon. But access to them does not depend on someone else’s server continuing to recognize my license.

For home theater enthusiasts, there is also the performance argument. 4K UHD Blu-ray can deliver higher video bitrates and lossless audio without the compression and bandwidth compromises inherent to streaming. Physical media offers excellent performance along with something becoming increasingly unusual in modern entertainment: a copy you can actually keep.

Music Has Exactly the Same Problem

The same argument applies to Spotify, Apple Music, TIDAL, Qobuz and every other subscription music service. You don’t own those 100 million songs. You are paying for access to a catalog, and that catalog can change.

Albums disappear. Different masters replace older ones. Labels change distributors. Licensing agreements expire. The album you played yesterday may not necessarily be there tomorrow.

Qobuz offers an important alternative because it operates a download store alongside its streaming service. Customers can purchase albums and download actual music files to local storage. Roon Ready? Permanence sold separately.

But even Qobuz makes the distinction worth understanding. Its support documentation says customers can normally re-download purchases, while explicitly warning that albums may later become unavailable for download and recommending that customers create backups.

That is the key difference. If you bought the download, saved the files and backed them up, a record label removing the album from Qobuz’s streaming catalog doesn’t magically reach into your NAS and delete it. If you only streamed it, you never had anything to begin with.

One Customer Is Enough to Ask the Question

Millions of consumers buy movies digitally without anything disappearing, and this single case is not evidence that everybody’s library is about to evaporate. It would also be naïve to assume this is the only person who has ever lost access to something they purchased digitally. Most of us do not conduct annual inventory checks on libraries containing hundreds of movies, so a missing title could easily go unnoticed for months or even years. What we cannot say is how many customers this has affected because Google does not publish that data.

But the story matters because it demonstrates what can happen when ownership is replaced by licensed access.

The customer clicked “Buy,” paid for the movies and expected them to remain available. Four years later, according to the support exchange they shared, they didn’t.

Perhaps the industry needs a different word than “Buy.”

Until then, I’ll keep my 4K discs, CDs, records and even those LaserDiscs. They take up more room, but none of them vanish because somebody in a licensing department changed a spreadsheet.

Related Reading: