The option of cash discount processing is something that many businesses today may be considering – and it’s certainly a “hot topic” for many business owners. However, as more businesses think about offering cash discounts to customers, there are some important things that business owners should keep in mind in deciding whether implementing cash discount processing is right for them.
What exactly is Cash Discount?
Cash discounts are a form of credit card processing where the customer pays the credit card fee or receives a “cash discount” for not using a credit card. Cash discounts reduce the price of a product when customers pay with cash instead of cards. This isn’t anything new, as gas stations have offered this program for many years – a credit price and discounted cash price. Interestingly, in spite of the discount, most customers like the convenience of using a credit card and are willing to pay the higher credit price.
Is cash discount legal?:
Yes. Cash discounts are legal when regulations and requirements of commercial payment processing are followed properly. They are NOT legal when these regulations are not known and therefore not followed. Unfortunately, many business owners unknowingly violate compliance by implementing their own version of a cash discount program. When enrolled in cash discount processing through Pay Proudly, full compliance is ensured. Our terminal and point-of-sale systems will automatically assess a percentage fee when a customer pays with their card. However, that fee is removed from the cost when the customer pays with cash instead.
Is there a way to try out Cash Discount?
It doesn’t have to be that the customer pays all the fees or that the merchant pays all the fees. Depending on your specific business, Pay Proudly can set up a processing program that will automatically split the credit card fee with the customer. This is a great way to get familiar with the cash discount program by offering to share the cost of using a credit card with your customer.
At Pay Proudly, our Mission is to help remove the confusion around payment processing by bringing honest clarity to our merchants. Our team takes the time to know you and your business, and develop the best payment processing or point-of-sale solutions for your unique business needs.
We welcome the opportunity to work with you to clarify your current rates, identify hidden rate increases, review how your rates compare to others in your industry and help you decide if a cash discount program is a good fit for you.
The other half of our mission is bringing charity to our communities – we are personally vested in your business’ success and the success of our communities. Approximately 10% of all fees collected are gifted to local charities on behalf of our merchants each quarter.
Our staff at Pay Proudly are payment processing experts, providing the best processing rates, popular point-of-sale solutions, personal support, and community funding contributions. Call us at (843) 707-6110 or click here for a complimentary effective rate audit and comparison.