Cash Discount

---

This cash discount processing program is a way for any merchant to dramatically reduce, or even completely eliminate their credit card processing fees. It works by having the merchant add a service fee that applies to all products and transactions. But, as an incentive to pay with cash, the merchant then gives a discount to customers making cash payments. The customers that choose to utilize their credit card for the transaction will see the service fee line added to their receipt. Conversely, customers who pay with cash will see a cash discount line item added to their receipt. Merchants that are using a cash discounting program, are required to post signs informing customers about the fee applied to all items, and also update their terminal application to add the appropriate fee to transactions. 

Yes, our cash discounting program is legal in all 50 states. Due to the Dodd-Frank Act, card payment networks are prohibited from preventing a merchant from giving their customers a discount based on their payment method: “from inhibiting the ability of anyone to provide a discount for payment by cash, checks, debit cards, or credit cards.”

Actually, no, it isn’t. Tons of businesses have been offering discounts for customer who pay with cash for years. In the United States, it is very common to see a lower price displayed if you make you purchase with cash. You have probably seen how popular it is at gas and service stations across the country.

No, offering a discount to customers who choose to pay with cash is a completely different situation than adding a surcharging, convenience fee when it comes to the card brands’ regulations. Surcharging Credit Cards: Surcharging is allowed under specific situations determined by the card associations but it is not common. Surcharging is adding a penalty fee only to customers who use a credit card and is illegal in ten states .Advantages of Cash Discount: Conversely, a merchant is always allowed to give their customers a discount on their products and services as they see fit. Cash discounting is just the business owner exercising this given right and is legal in all 50 states.

Just about! A vast majority of merchants using our program will see a drastic (95-100%) reduction in their monthly processing bill. A few merchants may still receive some smaller fees on their bills. These fees are due to variations in interchange prices. We will setup your merchant account billing on a daily discount structure. This means that your processing fees are taken out daily instead of all at once at the end of the month. Monthly statements will show your low total processing fees as well as the amount that is being deposited into your bank account. To cover participation in the program, you will also have a small subscription fee.

The fee method is chosen based on your average transaction size. If your business has an average transaction size under $15, you will most likely be setup on a flat dollar amount, per transaction fee. If your business For those with a larger than $15 average ticket, a transaction fee of 3.99% works best. By using your average transaction size, we are able to cover as much of your processing costs as possible.

According to the other hundreds of business owners’ using our program, this has not been the experience. As the amount of customers using cash continues to decline, going to an ATM and paying the ATM fees (sometimes over 5%) becomes more of a hassle than just paying a little extra to use a card. The transaction fee on an individual transaction (4% or a small flat fee) has a negligible effect on the consumer, but is has a significant effect on lowering your business costs.

Explaining to the customer that the cash discount program enables you to continue providing top notch goods and services without having to also increase all of your prices. Customers have repeatedly shown that they will continue doing business with cash discount merchants.

Our cash discount program meets all major credit card brands, state and federal standard regulations. The transaction fee, whether it be a flat per transaction fee or a percentage fee, are applied to all products and payment types. This is required to be compliant with regulations. For standard, product pricing a small service fee (similar to automatic service gratuity at a restaurant) is added to all sales. This is true, no matter the payment type (checks, cash, credit cards, debit cards, etc.)

The Durbin Amendment states that merchants are free to offer a discount and to encourage customers to pay via methods that are not a card. If a customer does pay their transaction with cash, then the discount is automatically applied at the time of sale and will show as a new line on their receipt.Several new credit card industry rulings went into effect as of January 27, 2013. This was the result of a federal class action litigation settlement against Visa and MasterCard. The settlement required that these two large credit card companies allow merchants who accept their cards as payment “to offer discounts to customers who pay with cash.