Zero Fee
Utilize our Cash Discount program to eliminate processing fees and retain more of your revenue.
Understanding Cash Discount Q&A
What Current Regulations Exist?
Our cash discount program complies with all major credit card brands, as well as state and federal regulations. Here's how it works:
- Transaction Fees: These fees, whether a flat per transaction fee or a percentage, apply to all products and payment types. This ensures compliance with regulations.
- Service Fees: A small service fee, similar to an automatic gratuity at a restaurant, is added to all sales regardless of payment type (cash, checks, credit cards, debit cards, etc.)
- Durbin Amendment: This amendment allows merchants to offer discounts to encourage customers to pay using methods other than cards. If a customer pays with cash, the discount is applied automatically at the time of sale and appears as a separate line on their receipt
Additionally, several new credit card industry rulings took effect on January 27, 2013, following a federal class action settlement against Visa and MasterCard. This settlement mandated that these credit card companies allow merchants to offer discounts to customers who pay with cash.
If I Charge A Fee For Credit Card Transactions, Won’t My Customer Be Upset And I’ll Lose Business?
According to hundreds of business owners using our program, this has not been the case. As fewer customers use cash, the hassle of going to an ATM and paying hefty fees (sometimes over 5%) outweighs the small fee for using a card. A transaction fee of 4% or a small flat fee has a minimal impact on the consumer but significantly reduces your business costs.
Explain to your customers that the cash discount program helps you continue offering top-notch goods and services without raising all your prices. Customers have consistently shown their willingness to support businesses with cash discount programs.
What’s The Difference Between A Percentage Fee And A Flat Per Transaction Fee?
The fee method is chosen based on your average transaction size.
Flat Per Transaction Fee: If your average transaction size is under $15, a flat dollar amount per transaction is usually best. This keeps costs predictable and manageable for smaller transactions.
Percentage Fee: For businesses with an average transaction size over $15, a percentage fee of 3.99% is more effective. This method scales with the transaction amount, ensuring a fair cost distribution.
By analyzing your average transaction size, we can determine the best fee structure to cover your processing costs as efficiently as possible.
Does This Cash Discount Program Mean I’ll Have Fee-Free Credit Card Processing?
Almost. Most merchants using our program see a dramatic 95 - 100% reduction in their monthly processing fees. A few might still encounter some smaller fees due to variations in interchange prices.
With our setup, your merchant account billing will follow a daily discount structure. This means processing fees are deducted daily rather than all at once at the end of the month. Your monthly statements will clearly show your low total processing fees, and the amount deposited into your bank account
There will also be a small subscription fee to cover participation in the program.
Is it worth it? We can help you figure that out. Give us a call and we'll show you how much you can save!
Is This Like A Surcharge? (Cash Discount VS Credit Card Surcharge)
No, offering a discount for cash payments is quite different from surcharge credit card transactions. Here's how they compare:
- Surcharging Credit Cards: Surcharging involves adding an extra fee only for customers who use a credit card. While surcharge is allowed in certain situations set by card associations, it's not very common and is illegal in ten states.
- Cash Discounts:On the other hand, cash discounting is simply a way for merchants to offer a discount for paying with cash. This practice is fully legal in all 50 states and is just a business owner's way of incentivizing cash payments.
Cash discounts are about offering customers a choice, not imposing additional fees.
I’ve Never Heard Of A Cash Discount Program Before, Is It New?
Not at all! Cash discount programs have been around for years. Many businesses have long offered lower prices for customers who pay with cash. In fact, you've probably seen this practice at gas stations and service stations across the country, where cash payments often result in a lower price. It's a well-established way for businesses to incentivize cash transactions and reduce processing fees.How Does The Cash Discount Program Work?
Our cash discount program helps merchants significantly reduce or even eliminate credit card processing fees.
Here's how it works:
Service Fee: Merchants add a service fee to all products and transactions. This fee is applied to cover processing costs.
Cash Discount: However, to encourage cash payments, merchants offer a discount for customers who choose to pay with cash.
Receipts: Customers paying with a credit card will see a service fee on their receipt. Those paying with cash will see a cash discount line instead.
Merchants using this program must post signs informing customers about the service fee and update their terminal applications to reflect the fee on transactions. This ensures transparency and keeps customers informed.
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Let’s transform the way you process payments! Contact me today for a free consultation.