Can I do Cash Discounting in Maine?
Yes, please see below.
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Maine specifically bans surcharging per Me. Rev. Stat. tit. 9-A §8-509 for non-governmental entities:
Me. Rev. Stat. Ann. tit. 9-A, §8-509
1. Surcharge prohibited. A seller in a sales transaction may not impose a surcharge on a cardholder who elects to use a credit card or debit card in lieu of payment by cash, check or similar means. For purposes of this section, “surcharge” means any means of increasing the regular price to a cardholder that is not imposed on a customer paying by cash, check or similar means. A discount or reduction from the regular price is not a surcharge.
Maine revenue statutes specifically allow a properly structured discount program:
Me. Rev. Stat. Ann. tit. 9-A, §8-509
1. Surcharge prohibited. A seller in a sales transaction may not impose a surcharge on a cardholder who elects to use a credit card or debit card in lieu of payment by cash, check or similar means. For purposes of this section, “surcharge” means any means of increasing the regular price to a cardholder that is not imposed on a customer paying by cash, check or similar means. A discount or reduction from the regular price is not a surcharge.
Notes:
The language regarding how a discount is viewed and what qualifies is relatively vague, and it is important to understand that in a state like Maine, it is critical to utilize best practices. For a cash discount program to work in Maine, you must ensure that the following are in place:
- the ability for a customer to view “full-price” or “non-cash” prices prior to the checkout experience (See our QR program).
- a service fee, credit card fee, or other fee is not itemized on the customer receipt
- the customer receipt must disclose that the credit paying customer did not receive a cash discount