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interchange fees beginning in April. Now anyone who "A payment card network shall not, directly or through
has history accepting credit and debit cards, or selling any agent, processor, or licensed member of the network,
card acceptance services, knows that Visa and Mastercard by contract, requirement, condition, penalty, or otherwise,
publish new interchange rates every April. inhibit the ability of any person to provide a discount or in-
kind incentive for payment by the use of cash, checks, debit
Some years rates increase for certain types of transactions cards or credit card," the law states. There are conditions,
(for example, card-not-present) or certain types of cards such as conspicuous disclosures and compliance with
(for example, platinum rewards). Sometimes rates are state laws, but otherwise discounts for cash payments are
reduced, as when the card brands want to encourage protected under federal law.
acceptance by certain categories of merchants. But
every April new interchange rates are published. That My friend James Shepherd, of CC Sales Pro and co-host
interchange adjustments are now the stuff of mainstream of the Merchant Sales Podcast, made the point in a recent
media reports demonstrates just how big an issue this is blog post. "Visa is certainly entitled to their opinion," he
for merchants and their customers. It also explains why wrote. "All evidence at this time is that they aren't taking
cash discounting has staying power. I've heard from action. When they do, and when they prove in court that
countless ISOs and MLSs that cash discounting is a cash these cash discounting programs are not protected by the
cow, and an easy sell. Durbin Amendment, then I'll start selling different. But
right now I love selling cash discounting because it is
Law may favor cash discounting simple, and it is a win for everybody."
With a 2018 bulletin asserting that many cash discount
programs may run afoul of its rules, Visa signaled it is That's what gives it staying power.
likely to crack down on noncompliant cash discounting
programs. But I believe, as do many others, that Visa's Patti Murphy is senior editor at The Green Sheet and president of
assertions rest on shaky legal ground, since the Durbin ProScribes Inc. Follow her on Twitter @GS_PayMaven.
Amendment clearly authorizes discounts for cash or other
merchant-preferred methods of payment.

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