General Consultant Discussion

Starting today I am adding a note on all my invoices that ""Pricing reflects a 5% cash/check discount. If paying by credit card please add 5% handling fee"". Has anyone used this before? Seems as if it should be allowable but I know there are rules about when you can and can't surcharge people.

Usually you have to send out the invoice reflecting the total amount and offer the 5% discount as a reduction.

Since that class action lawsuit, I'm pretty sure you can now do this: http://goo.gl/FCYJsR

But not in Connecticut, unless that state law has changed since the article was written

I would bill the full amount and offer a cash/check discount rather than ask them to bump up the total. Does it cost you any more to receive payment via ACH? If not, implement ACH AP processing for all your customers on 4.4 and after and have them pay you that way. Set up a sweep account to receive payments into and dance to the bank.

Looks as if Phil is right -- and the state conveniently exempts itself -- http://articles.courant.com/2013-08-17/business/hc-bottom-line-credit-card-convenience-fees-20130817_1_credit-card-convenience-fee-state-department

Laws apply on a state by state basis. California Civil Code section 1748.1 prohibits ""retailers"" from adding a surcharge when a consumer chooses to use a credit card instead of paying by cash. A retailer is someone who sells goods or services or anything else of value. Although retailers may not add a surcharge when you use a credit card, they can provide a discount to customers who pay cash. The law does not offer details on how the discounts must be disclosed or how large they can be. The law also doesn't specifically mention debit cards.