Merchants: Want to Eliminate Credit Card Processing Fees? Welcome Cash Discount Program
May 14th, 2018
The biggest complaint that we receive from merchants on almost a daily basis is how high their fees are. If you run a good size business, after the roof over your head and employees, in most cases credit card processing fees is the next biggest expense going into the thousands of dollars a month. If you are fed up with the fees, there is a new way to lower, if not eliminate the fees all together. Here comes the cash discount program.
A couple of processors that we use have now rolled out what’s called a “cash discount program”. At this moment, it works for retail face to face merchants only. It’s also good for non tipping environment. So how does it work? First, sign up for the program. You can choose to add a 1-4% service fee and/or flat service fee(.01-$1.00) to all credit card transactions. You will be supplied with a sign put on your door that all prices are for cash purchase and that there is a service fee for credit card transactions. That’s pretty much it.
Let’s go through an example of how it works. Let’s say you have a sale of $100. If they pay with cash, it’d be $100. That’s it. If they pay by credit card, (Let’s say you chose to do the 4% service fee), the merchant would be charged $104. To be in this program, you have a 3.5% charge for each transaction. So, at the end of the day, $100.36 for the $100 transaction would be deposited into your account ($104-$3.64 for fees=$100.36).
The picture at the top of this article shows how it would look on the customers receipt. This program is not for everyone, but if you are one who is over paying fees on payment processing and want to find a way to elimate that cost, this could be for you. Contact us for more details if you want to take advantage of this.