Cash Discount vs. Clean Rate: Which One Saves You More?

As a small business owner, credit card processing fees can eat into your profits fast. Two common options are cash discount programs and the traditional clean rate model. But which one actually puts more money back in your pocket?

What Is a Cash Discount?

A cash discount program passes processing costs to the customer by adding a small fee (typically 3.5%–4%) at checkout for card payments. Cash-paying customers get a lower price. It’s 100% legal and widely used across retail, food, and service businesses.

What Is a Clean Rate?

With a clean rate setup, your business absorbs the processing fee — usually a flat percentage per transaction. Customers pay the listed price, and you cover the card fees out of your margin. This is common in high-volume or premium retail settings where price consistency matters.

Side-by-Side Comparison

Which One Should You Choose?

• Use Cash Discount if you want to eliminate most processing fees and your customers are used to it (think local shops, barbers, or food spots).
• Use Clean Rate if you want to avoid visible fees and keep pricing simple and uniform.

Conclusion

Both models work — but the right one depends on your brand, customer base, and priorities. Cash discount saves you more. Clean rate keeps pricing friction-free. Either way, make sure your provider is transparent, compliant, and built for small business success.