US Code

Public Law 119-73 (01/23/2026)

15 U.S.C. § 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

(a)

Cash discounts

1

1 So in original. Probably should be preceded by “a”.
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

section 1605 of this titleWith 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 if such discount is offered to all prospective buyers and its availability is disclosed clearly and conspicuously.

Pub. L. 90–321, title I, § 167Pub. L. 93–495, title III, § 30688 Stat. 1515Pub. L. 94–222, § 3(c)(1)90 Stat. 197Pub. L. 97–25, title I, § 10195 Stat. 144(, as added , , ; amended , , ; , , .)

Editorial Notes

Amendments

Pub. L. 97–25section 1605 of this titlesection 1605 of this title1981—Subsec. (b). 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 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 , 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”.

Pub. L. 94–2221976—Subsec. (a). 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. 94–222Pub. L. 95–630, title XV, § 150192 Stat. 3713Pub. L. 97–25, title II, § 20195 Stat. 44

“The amendments made by paragraph (1) [amending this section] shall cease to be effective on .”
, as amended by , , ; , , , provided that:

Nullification of Board Rules and Regulations Under Subsection (b) of This Section in Effect on

Pub. L. 97–25, title I, § 10395 Stat. 144

“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 [], is null and void.”
, , , provided that: