Credit Cards Are Eating into Your Wallet. Cash Could Be the Fix
Sep 30, 2025
By Will Caffrey, National Business Development Manager, Pivotal-Sec Plus, ROI & NI
I saw this sign at a coffee shop and it got me thinking: are shops and restaurants still offering discounts for cash?
Cash discounts, while still rare, are up over 60% from 2015! More businesses are offering financial incentives to consumers who pay with cash rather than credit card.
Consumers can save 2% to 4% on their purchase by using cash. They'll also often save with a debit card, experts said. Businesses charge more for credit card purchases due to fees they incur per transaction.
A coffee shop counter sign noting higher prices for card payments, highlighting how paying in cash can save 2–4% as more businesses introduce cash discounts and card surcharges. Photo by Will Caffrey.
Why Merchants Offer Discounts
More merchants are offering a lower price to customers who use cash rather than credit cards for a purchase. That means opting for paper over plastic may save you money in some cases.
Typically, cash discounts run about 2% to 4% on purchases, though savings can be higher, experts said.
The share of cash payments with a discount is still low — only about 3% of all cash payments in 2022. However, that share is up more than 60% from 2015, when 1.8% of all cash transactions had a discount, data shows. While not yet the norm, cash incentives are likely to become more widespread, experts said.
The Counterweight: Card Surcharges
Meanwhile, other businesses have started to add a surcharge when customers use credit cards for purchases. In such cases, paying with cash can also yield savings as customers start to ask: “Is there a discount for cash?”
Nearly 7 in 10 cardholders said a business has charged them extra for paying with a credit card, according to a recent LendingTree survey.
Credit Card Growth vs Retail Costs
According to the Central Bank of Ireland, credit card share grew to 31% from 18% during that period. However, costs to retailers have also increased significantly at the same time.
The Policy Backdrop
The new Finance (Provision of Access to Cash Infrastructure) Act 2025 (Ireland) was enacted to manage the orderly evolution of the cash infrastructure. With this in place to ensure you still have access to cash, don’t be afraid to ask: “Is there a discount for cash?”