Title 15, Commerce and TradeRelease 119-110
§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 41 — CONSUMER CREDIT PROTECTION › SUBCHAPTER I — CONSUMER CREDIT COST DISCLOSURE › Part D — Credit Billing › § 1666f
Summary
Card issuers must not stop stores from giving a discount to a buyer who pays by cash, check, or a similar method instead of using a credit card. A discount meant to encourage payment by cash, check, or other non‑credit ways is not a finance charge if it is offered to all potential buyers, is clearly shown, and applies to payments that do not use a credit card or an open‑end credit plan.
Full Legal Text
Title 15, §1666f
Commerce and Trade, Source: USLM XML via OLRC
(a)Cash discounts
With respect to credit 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)Finance charge
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
Sep 23, 2026
Release point: 119-110