What is Cash Discounting?

At checkout, the terminal or POS system will know, in real-time, how to adjust each credit card transaction. The adjustment is a small percentage added to the customer sale on the receipt when using a credit card. When using cash, the customer does not pay this surcharge and thus gets a discount. This adjustment means your customer is providing you the same profit margins, whether they pay in cash or not. It doesn’t get any easier than that.

If you have been charging your customers a higher price than you would like to charge because you knew many would pay with plastic, you can now offer the cash discount pricing on all advertised pricing. This would make your advertised pricing more competitive and attractive to your customers without costing you any money and putting that once cost center of a program and putting it back to your bottom line!

How Cash Discounting Is Fair to Your Customers:

Customers that pay cash provide you with a 2-4% higher margin on every sale.
Credit Card using customers cost you 2-4% on every sale.
Many merchants mark up their products and/or services to offset the cost of credit card processing. This is an unfair markup to those customers who use cash as a form of payment since they do not cost you anything to accept their cash. Cash Discounting gives you an easy way to reward them for paying with cash and is truly fair to all of your customers.

How Cash Discounting Is Fair to You:

Your customers are incentivized to use credit cards even when they have cash, just so they can get the rewards points from their card. The customer gets the rewards points which you pay for each month in merchant fees. These rewards are then used for airfare, vacations, gifts and all types of other benefits. Cash Discounting makes it fair to everyone. The one who gets the benefit absorb the costs.

We have all been paying utility bills, cell phone bills, buying gas and on occasion a hotel bill. Have you seen the extra fees and charges attributed to these and other bills we all pay? Studies show that even though you will have signs up explaining Cash Discounting, only 1% of your customers will care or notice, as extra small fees are so common.

Still Not Sure? TEST IT!

Set Barrister Financial Services Cash Discounting credit card machine right next to your current machine. Use it. After 60 days, if you don’t like it, send the equipment back.


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