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Title 15 — Commerce and TradeRelease 119-73

§1666f Inducements to cardholders by sellers of cash discounts for payments by cash, check or similar means; finance charge for sales transactions involving cash discounts

Title 15 › Chapter CHAPTER 41— - CONSUMER CREDIT PROTECTION › Subchapter SUBCHAPTER I— - CONSUMER CREDIT COST DISCLOSURE › Part Part D— - Credit Billing › § 1666f

Last updated Apr 6, 2026|Official source

Summary

Card issuers cannot stop a seller (someone other than the card company) from giving a discount to a cardholder who pays by cash, check, or a similar method instead of using a credit card. A price discount that a seller offers to get payment by cash, check, or other non‑credit methods is not treated as a finance charge under section 1605 if the discount is offered to all potential buyers and its availability is made clear and easy to see.

Full Legal Text

Title 15, §1666f

Commerce and Trade — Source: USLM XML via OLRC

(a)With respect to credit 11 So in original. Probably should be preceded by “a”. card which may be used for extensions of credit in sales transactions in which the seller is a person other than the card issuer, the card issuer may not, by contract or otherwise, prohibit any such seller from offering a discount to a cardholder to induce the cardholder to pay by cash, check, or similar means rather than use a credit card.
(b)With respect to any sales transaction, any discount from the regular price offered by the seller for the purpose of inducing payment by cash, checks, or other means not involving the use of an open-end credit plan or a credit card shall not constitute a finance charge as determined under section 1605 of this title if such discount is offered to all prospective buyers and its availability is disclosed clearly and conspicuously.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

1981—Subsec. (b). Pub. L. 97–25 substituted “With respect to any sales transaction, any discount from the regular price offered by the seller for the purpose of inducing payment by cash, checks, or other means not involving the use of an open-end credit plan or a credit card shall not constitute a finance charge as determined under section 1605 of this title if such discount is offered to all prospective buyers and its availability is disclosed clearly and conspicuously” for “With respect to any sales transaction, any discount not in excess of 5 per centum offered by the seller for the purpose of inducing payment by cash, check, or other means not involving the use of a credit card shall not constitute a finance charge as determined under section 1605 of this title, if such discount is offered to all prospective buyers and its availability is disclosed to all prospective buyers clearly and conspicuously in accordance with

Regulations

of the Board”. 1976—Subsec. (a). Pub. L. 94–222 temporarily designated existing provisions as par. (1) and added par. (2). See Termination Date of 1976 Amendment note below.

Statutory Notes and Related Subsidiaries

Termination Date of 1976 Amendment section 3(c)(2) of Pub. L. 94–222, as amended by Pub. L. 95–630, title XV, § 1501, Nov. 10, 1978, 92 Stat. 3713; Pub. L. 97–25, title II, § 201, July 27, 1981, 95 Stat. 44, provided that: “The

Amendments

made by paragraph (1) [amending this section] shall cease to be effective on February 27, 1984.” Nullification of Board

Rules and Regulations

Under Subsection (b) of This Section in Effect on
July 26, 1981 Pub. L. 97–25, title I, § 103,
July 27, 1981, 95 Stat. 144, provided that: “Any rule or regulation of the Board of Governors of the Federal Reserve System pursuant to section 167(b) of the Truth in Lending Act [subsec. (b) of this section], as such section was in effect on the day before the date of enactment of this Act [
July 27, 1981], is null and void.”

Reference

Citations & Metadata

Citation

15 U.S.C. § 1666f

Title 15 — Commerce and Trade

Last Updated

Apr 6, 2026

Release point: 119-73