How Can Cash Discount Surcharging Help You Save Money?
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.
