Do you want to offset your online merchant services fees? The cash discount program can help you offset the fee without increasing the pricing of your merchandise. One great benefit of this program that most merchants enjoy is they don’t have to pay anything for credit card processing. Wondering how this program can affect your credit card processing fee? Let’s understand the cash discount program and how it works?
The cash discount program is absolutely suitable for several business models but we cannot say it is an ideal program for all. If you are planning to adopt this program but are not sure where to begin, let me tell you this program can help you bring countless benefits to your business. This is especially true if most of your customers already pay via credit cards or in cash. If you are looking for the cheapest credit card processing solutions, then the cash discount program can be a great choice for you.
Despite the growing popularity of online and digital payment methods among modern customers, a lot of people still make cash payments. That is why a lot of businesses are fast switching to cash discount programs.
The Cash Discount Program provides a credit and cash price to your customers. Let me tell you how it works. If your customers make cash payments, they get a discounted price but if they choose to pay through a card they have to pay a little bit higher price including your processing costs. In other words, customers end up saving more if they pay in cash instead of credit cards. Why? It is because they don’t have to pay the additional cost that is added secretly to the product cost due to the credit card processing fees that the merchant has to pay in order to accept the card payments. While paying in cash helps customers get discounted prices, merchants can easily eliminate the card processing fees. However, by encouraging your customers to shop in cash as part of your cash discount program, you can still keep the card payment option open to your customers.
The cash discount program is one of the highly sought-after merchant services for small businesses looking to get rid of card processing fees. However, this never implies that the popularity of digital and online merchant services is diminishing in any way. A lot of customers prefer cards to cash due to the convenience the former offer and many benefits such as reward points, etc. Businesses, including retail stores, salons, service professionals, restaurants, and others choose the cash program due to the following benefits it offers:
As they say, “a penny saved is a penny earned,” you can increase your earnings indirectly by eliminating credit card processing fees if you go for the cash discount. As already discussed above, customers who use the credit cards for shopping have to pay additional to cover the card processing fees of the merchant. By going cash, small businesses can make substantial savings and use the saved money for business expansion, boosting their marketing strategy, and earn more.
This program provides your customers with more options to pay. Those who like to pay by credit card can still pay as they like but those who want to make cash payments can save more! So, your customers will have cash and card options to pay, and this way you open up your business to more customers and attract customers who are actually bargain hunters.
When accepting credit card payments through online merchant services, you should be ready to pay a certain percentage of each transaction as processing fees. This causes uncertainty and volatility for small businesses that want to control their budget. With a cash discount, you can completely eliminate this stress and continue generating more profits.
Even when online payment options have become common and ubiquitous today, a lot of wary customers still don’t want to share their credit card details and prefer cash to credit. By not offering a cash discount, you may be missing out on these potential customers. With a cash discount, you can keep the payment simple for such customers. Also, this will help you reduce pricing disputes, chargebacks, fraud, data breaches, and other such complications.
You will have more cash in hand
Cash payments ensure you get paid instantly – it doesn’t take one or two days for the cash to reach your hands. So, there is no waiting time and the transaction is instant.
How to choose the best cash discount program?
To help you make an informed decision in this regard, you will need the help of experts in the domain such as those at Payment USA – a name you can count on for all merchant services for small businesses, cash discount programs, and complete traditional as well as online merchant services.