Tuesday, June 23 2020
Are you tired of losing 2 -4% of your credit card sales to the credit card companies? That’s the cost of doing business, right? Where do you draw the line, though? When does it become too expensive to allow customers to pay with credit cards? You can’t just turn credit card paying customers away – that’s bad for business, so what should you do?
Try the Cash Discount Program. It helps ease the financial stress on merchants while rewarding cash buyers with a discount. It’s a win-win for everyone.
Check out how it works below.
Understanding the Cash Discount Program
When you use the Cash Discount Program, you must make it known that you offer cash buyers a discount on the total cost of the items and customers paying with a credit card pay the full, listed price. This isn’t a surcharge – you aren’t penalizing credit card paying customers. Instead, you’re offering cash discounting or rewarding cash-paying customers.
Here’s an example.
You have a product listed for $20.
John comes in and buys the product for $20, paying with a credit card. John pays $20. Jan comes in and buys the product for $20, paying cash. Jan pays $19.20 because she gets a 4% discount for paying cash.
How Merchants Benefit from the Cash Discount Program
It may seem strange to advertise that you offer discounts for cash buyers, but it has its benefits:
• You’ll reduce your fees. The fewer credit cards you process, the less you fees you pay.
• You’ll have access to your funds faster. With more incentive to pay cash, more customers will do so, giving you instant access to your revenue.
• Fewer credit card purchases means a lower risk of chargebacks.
How the Cash Discount Merchant Services Work
The process is simple. Just let us know you want to be a part of the Cash Discount Merchant Services. We’ll provide you with signage that states the percentage credit card customers will pay if they pay with a credit card.
You go about business as normal, processing payments as you normally do. If you have a credit card paying customer, our terminal will calculate the fee for you. There’s no extra work on your part, and you reward the cash-paying customers with a discount – it’s that easy.
The Cash Discount Program is Great for Business
You may think the cash discount program would turn off your credit card paying customers, but it won’t. A majority of customers don’t mind paying a small fee, (cents on the dollar really) for the convenience of carrying credit cards versus cash.
You and the customers come out the winner in the deal. You show honesty and integrity by providing signage that lets customers know of the fees if they use a credit card and you reward those that choose to pay cash. Eventually, more customers will catch on and have cash available when they shop at your store – after all, who doesn’t love a little discount, right?