Can I do Cash Discounting in California?

Yes, please see below.

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California prohibited credit/debit surcharges per Cal. Civil Code §1748.1 but was declared unconstitutional in Italian Colors Restaurant et al. v. Harris, 99 F. Supp.3d 1199 (E.D. Cal. 2015). Surcharging is legal in California.

California revenue statutes specifically allow a properly structured discount program:

Cal. Civil Code §1748
Any provision in a contract between a card issuer and a retailer which has the effect of prohibiting the retailer from offering price discounts or from charging a different and lower price to customers who pay for goods or services by cash instead of by credit card is contrary to public policy and void.


Cal. Civil Code §1748