This is the single most important distinction in the whole law, and it is the one that trips up businesses that are genuinely trying to do the right thing. Get the structure right and you are on the safe side. Get it wrong - even with good intentions - and a program meant to be legal can be a prohibited surcharge in substance.

The difference is the starting point

A surcharge starts from a base price and adds an extra amount at checkout for paying by card. A cash discount starts from one posted price that everyone sees and takes an amount off for paying cash. Same gap, opposite direction.

SB 254 asks one question: is an additional amount imposed for using a debit card? In a surcharge, yes. In a true cash discount, no - nothing extra is added; cash simply pays less. The label on your sign does not decide it. Calling a surcharge a "service fee" or "non-cash adjustment" does not move it to the legal side; the structure does. You can see both modeled side by side in the surcharge vs. cash discount comparison on the homepage.

Why "same dollar" is not the same risk

Picture a $4 difference on a $100 item. Add a $4 card fee to the $100 and a debit customer pays $104 - that is a surcharge. Post the price at $104 for everyone and give cash buyers $4 off - that same debit customer still pays $104, but now it is a discount. Identical to the customer; opposite under the law.

A note on timing: The line between a legal cash discount and a prohibited surcharge is structural, and how your equipment treats debit can blur it. The Attorney General's enforcement rules are still being finalized, so some operational details may change. Everything here reflects the law as written - for advice on your specific situation, consult a qualified professional, and confirm rather than assume.

Where it gets subtle

A genuine cash discount has to be built and disclosed correctly: one posted price, consistent signage and receipts, and a difference that reflects your real cost of accepting cards rather than a markup. Done wrong, a "discount" can be a surcharge in disguise - and it can run afoul of card-network rules at the same time. Whether yours holds up is exactly the kind of thing worth confirming, not assuming. The Risk Scorecard gives you a first read, and a free ZeroPoint check verifies the structure against your actual receipts and statement - the difference between "probably fine" and "confirmed fine" before August 1.