What is Cash Discount Surcharging?
The Cash Discount Program is your way to accept all credit cards and eliminate credit card processing fees by passing them on/surcharging customers. Cash discount is when a merchant offers a discounted price to a customer if they choose to pay with cash for an item or service as opposed to a credit card.
How Can Customers Save Money with Cash Discount Surcharging?
The cash discount surcharging programs are modeled to save everyone money. Customers who pay with cash at a business save money by receiving a cash discount. Example: •T-Shirt Price: $10.38 (Price includes the 4% credit card markup fees) •T-Shirt Discounted Cash Price: $9.99 (Cash prices exclude the credit card markup fees).
How Can Businesses Save Money & Reap Profits by Offering a Cash Discount?
Businesses who offer cash discount save money by getting rid of their processing fees. Businesses can now process an unlimited amount of credit card transactions in a single month and still keep their monthly statement as low as $25 a month. You are no longer obliged to cover the cost for all different types of credit card reward points, network fees or interchange fees. A cash discount program may also work as an incentive for customers to spend more since they’re receiving a small monetary discount.
How Does it work?
When you offer a discount to those who pay with cash, you can add a small service fee to all credit card transactions. Merchants post dual prices or signs to inform customers of the cash paying discount. The point-of-sale terminal automatically applies the small fee to customers that pay with a credit card. This fee completely offsets the credit card processing fees your business gets charged.
Get Started With a Free Point-of-Sale Terminal!
Call JaimePOS now and get started for free. On top of eliminating your processing fees with the Cash Discount Program, JaimePOS will also provide you with a free point-of-sale terminal best suited for your business. Contact us now by sending a message or call us now to get started.