Have you found yourself frustrated when faced with credit card processing fees? If you accept credit cards, these fees are a monthly ordeal! But what if there was a way to offset these fees?
Despite its benefit, it comes at a hefty price to many, especially retail stores and restaurants where margins are frequently already thin.
Take, for example, a transaction amount of $100; with a processing fee of 3%, you’d be paying $3 to your merchant services provider. So, the question that looms is, how can you continue offering this convenience to your customers while also saving on credit card fees?
We’ll dive into what a cash discount program is, how it operates, and the compliant ways to implement it to keep more of your hard-earned money in your pocket!
Now, you might be wondering, how do I get started?
Setting up a cash discount program is straightforward, but let’s make it more tangible with a real-world example.
Consider the San Remo restaurant, which decided to implement a cash discount program to alleviate the sting of credit card processing fees. They placed a clear sign at the entrance and by the cash register, explaining the cash discount program to their patrons.
If a customer chooses to pay with cash, they provide a 4% discount off the sale price. So, for instance, if the total ticket came to $100, a cash-paying customer would receive a $4 discount, bringing their total to $96.
On the flip side, if a customer opted to pay by card, they would pay the full price of $100.
The cash discount signage and straightforward discount made it easy for customers to understand the benefits of paying with cash, and in turn, helped San Remo restaurant to offset the costs associated with credit card transactions
IF you are ready to follow in San Remo’s footsteps, your first port of call should be consulting with your merchant services provider. They can equip you with the necessary point of sale software and hardware and signage, and guide you through the process to ensure your program is implemented correctly and compliantly.
Communication is key, so ensure your customers understand the benefits of the cash discount program, and how it helps to keep prices competitive while offering them a discount for paying in cash. With a well-implemented cash discount program, you can continue to offer the convenience of card payments without the hefty fees eating into your profits. It’s a win-win!
So, why not give it a shot? Your bottom line will thank you!
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