By: Jill Miller, RSPA General Counsel

For the past decade the industry has navigated the complexities of cash discounting, surcharging, and dual pricing. There have been multiple state laws and card brand rule changes in that time period.  What may have been deemed compliant in one year, may not pass scrutiny in a future year.  

Many of us in the industry have worked hard to translate the laws and apply the card brand rules to  various cash discount, surcharge and dual pricing programs, helping VARs and ISVs understand the legal and regulatory framework so they can better support their customers. What I have discovered is our industry is innovative, so new programs are continuously being designed and that’s what makes this work equally challenging and rewarding.

Mitigating Risk
I often am asked to advise business owners of the risks involved with their specific cash discounting, surcharging or dual pricing programs.  Their job is to take that information and work with their internal teams to design a program that is flexible and compliant.

If you are advising your customers on compliance and pricing strategies, you need to be aware that they probably have less knowledge and experience in this area than you and your team. I encourage VARs and ISVs to focus on educating their customers about the risks and rewards associated with different pricing strategies. It’s not about telling them what to do – it’s about making sure they understand how they roll out a program could impact their business.

One piece of advice I often give to VARs and ISVs is to build a network of experts for their business, including legal professionals, compliance officers, and subject matter experts – who can help them navigate this tricky industry. It is essential to educate yourself but equally important to surround yourself with the right people who can offer the specialized knowledge to help you make the best decision for your business and provide the best advice to your customers.

Looking Ahead
I can’t say the rules and laws around cash discounting, surcharging and dual pricing will become crystal clear in the near future. Continued education and collaboration are key elements to understand the marketplace and deliver a compliant program.   What I can say with certainty is this industry is and will remain complex.

I am available to help those who need guidance, and I encourage you to take advantage of the resources available through the RSPA. Together, we can navigate this complex payments issue and work together to find the best path forward for your business and your clients.

RSPA Member-Only Benefit: Legal Assistance
The RSPA provides members with unlimited phone and email consultations with RSPA Legal Counsel Jill M. Miller along with access to legal templates. The legal counsel also meets one-on-one with members at RSPA events (RetailNOW and RSPA Inspire) and contributes to RSPA’s Community Connection newsletter, Trusted Advisor podcast, and website. RSPA members can connect with Jill by email at jmiller@bodmanlaw.com.