What is a cash discount program?
There is something that every business owner will agree on. When it comes to your business, every dollar that you make counts. Every cent that you can save is another cent that you can add towards your profit. Therefore, if there is a way for you to eliminate unnecessary costs, you can be sure that every business owner out there is going to jump at the chance to do it. This is where a cash discount program comes in.
If you are a business owner, you’re probably tired and frustrated at having to pay processing fees. It is, in all honesty, unnecessary and if you could eliminate that cost from your overall expenditure, it is to your business’s benefit. Credit card companies will jump at the chance to overcharge your business because it means more money in their pocket. With costs like interchange fees, statement fees, and other miscellaneous fees, it is more trouble than it’s worth to keep this system going.
Why let your bottom line suffer when there is an alternative? For example, the cash discount program. With a cash discount program like PaymentCloud, you have a new way to keep your profits in your pocket.
How A Cash Discount Program Works
A cash discount program works by offering customers an incentive to pay cash instead of putting their purchases on a credit card. For example, you could advertise in your store that a four percent surcharge applies to all purchases made by credit card. However, when customers pay cash, your business is offering an immediate four percent discount on the applicable service fee. Therefore, when a customer pays twenty dollars for an item, they are only going to pay twenty dollars if they choose to pay in cash. If the customer chooses to pay twenty dollars by credit card, they would have to pay $20.80 for the service fee.
The customer is going to immediately be drawn to the option that is going to save them more money, even if it is just a few cents. This benefits the customer because they save money on the service fee, and it benefits you as the business owner too. The cash discount program is going to offset your service fee and you will be able to channel that money back into your business in the long run.
Charging your customers a processing fee for using the credit card service is not illegal. As long as your business is operating legally and complying with the local business regulations of your state, you’re good to go. Offering a cash discount program is not going to affect your sales or cause you to lose customers. Most customers will be happy to pay cash if they receive excellent customer service at the store. Customer service is the one that keeps them coming back for more. Customers love a good discount and businesses love profit. In the long run, the cash discount program is a win-win solution for everyone involved.
To find out more about Payment Cloud’s cash discount program, visit https://paymentcloudinc.com/blog/cash-discount-vs-surcharge-program/