Cash discount programs are not a fad. With growing numbers of consumers using credit cards, it’s time has come and merchants are starting to see too many benefits to ignore. Cash discount programs have become one of the least expensive solutions for credit processing in today’s market, due to which it has earned a huge popularity for small businesses.

Here is an elaboration of how such a program works and in what ways it can prove beneficial for your business.

What is a Cash Discount Program?

A cash discount program aims to provide the customers with a cash or credit price. Customers pay less if they pay by cash; opposite is the case with credit card. The high price paid for credit card payment includes the processing costs. This is how cash payers get a discount. And, for good reason.

Benefits of a Cash Discount Program

A number of different businesses like to offer cash discounts due to its huge benefits. These may include restaurants, retail stores, hair salons, service professionals, repair shops, accountants  and many others.

Credit card processing fees are a significant overhead expense for the small businesses and historically it was built in as a hard cost.

Eliminate Credit Card Processing Fees

The most important reason for switching to the cash discount program is the elimination of all or at least most of the processing fees for the credit cards. For small businesses, it can sum up to a huge saving.

Gives Your Customers More Choice

While you offer a cash discount program, you actually offer two varying prices to your customers. Cash paying customers pay a lower price, hence, cash discount. Customers paying via credit cards pay a slightly higher price which covers the processing cost. Consumers have the choice as to how they will pay. But, if they choose to use a credit card, the cost will be higher simply because it costs money to have the convenience of using the cards.

Keeps Your Profit Margins Constant

Typically, a percentage of each transaction is charged as traditional processing fee (interchange plus pricing), which results in high level of uncertainty and volatility on part of business owners. You literally do not know what you will pay from month to month. This issue is eliminated by cash discount programs, as it provides a more constant expectation of what you should expect, budget for and plan for the future.

Simplifies the Payment Process

The payment process is made way simpler for all the involved parties. When the cash payments are encouraged, the risk for a number of complications can be minimized including pricing disputes, chargebacks, fraud, data breaches and so on.

More Cash

Modern technology has succeeded in diversifying the payment methods in ways like mobile payments, contactless payments. But, when the customers do cash payments, you are able to receive the payment on the spot and you don’t have to wait for the transaction processing. It’s there immediately.

Choosing the Best Cash Discount Program

We are partial to our program but it came at a cost and learning curve to figure out that not all cash discount programs are the same. We would love to explain the difference to you. Please consider filling out the form below. We will  reach out and explain why our program is exceptional compared to many others on the market.

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