Cash Discount

Is It Legal to Charge Two Different Prices?

Most business owners are familiar with the concept of a surcharge – it’s just a way of saying that additional fees are passed on to your customers. In some states, it’s illegal to add a surcharge. However, others allow it. Using a cash discount program like National Processing’s will help you create a more attractive pricing structure.

How Does Processing Credit Cards Cost a Business Money?

Processing credit cards comes with a host of fees attached. Your per-transaction fees add up to about 4%, or four cents on the dollar, for every purchase your customers make. That doesn’t sound like a lot, and when taken on a transaction-by-transaction basis, it’s not. However, add that 4% up over a month. It grows very quickly.

Let’s say that your car detailing business sees about 10 customers per day and each customer pays around $100. That’s $1,000 per day in revenue, but if they all pay by credit card, you lose $4 from every transaction, or $40 per day, leaving you with $960. Now, multiply that by 30 days – you’re losing $1,200 per month, or $14,400 per year.

What could you do with almost $15,000 more per year? If yours is like most small and medium-sized businesses, the answer is “a lot”. Get in touch with National Processing today. We can help you recoup that expense.

How Does the National Processing Cash Discount Program Save Me Money?

Minimizing cost while maximizing profitability is the key to running a business with a thriving bottom line. National Processing’s cash discount program is a critical part of your strategy and can help you save money in several different ways.

Processing Fees: With the National Processing cash discount program, you can eliminate most of the processing fees that you incur by accepting credit card payments from customers. That’s because your discount encourages customers to pay by cash, and those customers who choose to pay by card also pay their own fees.

Reduced Interchange Fees: All credit card purchases incur interchange fees on top of processing fees and other costs. By accepting cash payments, you avoid paying interchange fees. That also allows you to set more competitive pricing for your products or services.

Purchase Service Fees: Chances are good that your processing company or bank charges you purchase service fees on all card transactions. These are for things like customer service and backend maintenance. By accepting cash, you avoid paying those fees yourself and don’t need to worry about passing them on to your customers, either.

Advertise a Lower Price: Let’s be honest – everyone loves to save money, and your customers are no exceptions to that rule. With a cash discount program, you can advertise lower prices and draw in more customers, boosting your cash flow and strengthening your bottom line, all without incurring additional fees and expenses. It’s a win-win.

Stability and Predictability

Credit card processing fees do more than eat into your profit margin. They create instability and volatility. While a degree of uncertainty is unavoidable, it’s important to eliminate it as much as possible. After all, without the ability to create an accurate budget, you can’t grow with confidence. Instability and uncertainty can limit growth and success. With a cash discount program, you benefit from stability and predictability – you can plan ahead thanks to a consistent profit margin.

The National Processing Cash Discount Program

At National Processing, we are committed to helping our clients grow and thrive. Our cash discount program is just one more way we do that. Our program is open to all clients and offers a cash discount rate of 3.99%. The monthly minimum is $3,000, with a $30 cost fee if you have less than $3,000 in a month. It’s simple, straightforward, and easy to understand, with no double-talk and no hidden fees.

Get the information you need to make an informed decision and grow your business. Contact us today to discuss our cash discount program.