Covid-19 has certainly changed the business landscape, especially for small to medium sized businesses. Certain industries like hospitality have been hit hard, while others like the grocery store industry have hit the proverbial jackpot. For the most part, consumer discretionary business like retail and restaurants have been severely crippled and are just trying to stay afloat. If your business is currently accepting credit card payments, offering our cash discount program is an effective way to save money.
Keep the customers coming...even now.
Our cash discount program can incentivize customers by providing them discounted services or goods when paying cash. Remember that consumers have also been hit hard by the COVID-19 pandemic, with upwards of 40 million Americans unemployed or underemployed. Everyone is trying to save money.
Keep your inventory flowing.
Implementing out cash discount program to encourage immediate payments can help you in turn purchase the inventory you need for your business. With everyone impacted negatively by COVID-19, your suppliers may also be offering deals for cash payments, so being able to pay up front may in turn be a huge boon for your business. It can all start by collecting more cash from your own customers or clients.
Avoid fees and stay afloat.
One of the biggest benefits of our Cash Discount Program is avoiding reducing or eliminating processing fees associated with credit card transactions. The money you save by not having these expenses eat into your profits might just enough to help your business profit. Of course, you can pass these discounts on to your customer and stimulate more sales.
Keep your capital and increase profit margin.
Encouraging cash, check, or gift card payments by customers can also speed up the time it takes for funds to come into your business. If you have a business where capital on hand is a valuable asset, then cash discounts become a valuable tool for making that happen. Some small businesses will have difficulty getting bank loans or private funding during this time, so acquiring cash capital yourself—directly from clients—might be an easier way to go. There is no waiting for card transactions to be processed and show up in your account; nothing beats the speed of cash being handed over. Alternatively, you can acquire capital faster with payments made in full, instead of payments made over time. Offering a cash discount program can facilitate more customers paying all at once.
Avoid extra stress during this difficult time.
Cash discounts usually include payments made up front or by a certain time period, with cash, check, or store gift card. But cash payments specifically made with actual currency also have the added advantage of helping you avoid fraudulent transactions, bogus cards, and checks that bounce. They can also help you avoid chargebacks, which come with their own additional fees.
How does the cash discount program work?
In its simplest form our cash discount program allows you to incentivize cash paying customers and pass processing fees on to customers paying with credit cards. By doing this, you effectively zero out your processing fees. While it is a simple concept, there are regulatory requirements and special credit card terminals needed.
Implementing our Cash Discount Program is straightforward and we provide all you need to get started. We provide you with payment terminals which have the cash discount software built in. This way, all you have to do is plug them in. There are a few requirements mandated by the major card brands (Visa, Discover, AMEX, etc.). 1) You must place signage (we provide) in a conspicuous place. 2) Your menu prices must reflect the 3.8-4.0% increase for non-cash paying customers. 3) The customers receipt must reflect the non-cash adjustments on them.
That’s it! We will guide you through everything and get you set up in no time to start using our Cash Discount Program and eliminate credit card processing fees.
Posted on Jul 09, 2020