What Is Cash Discount Payment Processing?
Successful business owners look for ways to keep costs down. If you want to increase your profit margin, think about offering a cash discount to avoid paying credit card processing fees. Both you and your customers can save money.
How a Cash Discount Payment Processing Program Works
As a business owner, you have to pay a fee every time a customer uses a credit card. Successful companies know that the more payment options they offer, the more sales they make. Cut down on those fees by raising your prices a bit and then offering a discount to those customers who pay cash. Set a minimum purchase requirement for your clients to qualify for the discount.
Our Club Zero plan enables your customers to make purchases online and pay cash while saving you 99% of merchant fees. Here are six benefits of such a program.
1. A Cash Discount Program Removes the Processing Fees
Business owners have always considered credit card fees the cost of making sales. It’s frustrating watching that expense cut into your profit. A discount for cash payments slashes those costs.
2. Offering a Discount Attracts More Business
When people know they can save money, they tend to spend more. They also come back to your store knowing they can get better prices for the goods and services they need. Promote a discount for paying with cash, and you’ll bring in more customers looking for a bargain.
3. It’s Easy for Customers and Employees To Understand
Offering a discount for cash payments is easy to understand. Pay cash and you get a percentage off. Stores that offer this type of discount can price all the items in the store with the service fee built into the amount. You don’t have to worry about processing fees.
4. You’ll Have Fewer Chargebacks
With fewer credit card purchases, you don’t have to worry as much about thieves who steal someone’s credit card to make fraudulent purchases. When this happens, the credit card company demands the business return the money, which is called a chargeback. The business owner suffers the loss. This happens less when you offer an incentive to pay cash.
5. You’ll Maintain Consistent Profit Margins
Your company’s profit margins represent your bottom line or the amount of money you are making from your business. Having a consistent profit margin makes it easier to stay on budget. Credit card processing fees gouge out that profit. When you have a large number of credit card payments in one month, your profit is lower.
6. A Cash Discount Program Helps Eliminate Debt
Encouraging your customers to pay with cash makes them less likely to incur debt. Because you have more cash on hand, you’ll also use less credit and reduce your debt as well.
When You’re Ready To Start a Cash Discount Payment Processing Program
At PaymentClub, we can help create a cash discount program for your business. We offer the lowest prices available and provide you with the right software to make processing payments easy. Plus, your first month with us is free. Contact us for more information.