Educating our Customers is What We Do

Cash discount or surcharging programs are a way for businesses to mitigate the costs of accepting credit and debit cards, however there are things you need to know to remain compliant. We’ve taken the time to do it right so you don’t have to worry! Our proven and reliable platform will accelerate your implementation without any added risk or cost.

Let us be the experts so you don’t have to be. As a Payments Partner, educating our customers is what we do best.

Before you decide it's important to consider:

  • What will my customers think?
  • How will I disclose this to my customers?
  • What are my competitors doing?
  • Is my business operating in Colorado, Kansas, Connecticut, Massachusetts, or Oklahoma?
  • Do I have a Processing Partner that operates in compliance?
  • How will my staff get educated so they know how to properly handle questions from customers?

Benefits of Cash Discounting

  • Easy to implement
    With the right Payment Partner, Cash Discounting is an easy program to implement.
  • Accepted in 50 States
    It’s legal for a business to offer a discount for cash in every state, as long as your program is compliant.
  • Fraud Reduction
    By reducing the number of customers using cards in your business, chargebacks will also lessen. If chargebacks have been problematic for you, the decrease might help minimize your exposure while lowering risk for your business.
  • Inspires Cash Payment
    Even though most of your customers may prefer to pay by card, cash discounts incentivize them to use cash instead of a card. The time between the customer sale and the access to funds is immediate.
  • Promotion Tool
    A Cash Discount Program can be a useful marketing tool for your business that can attract more customers. The word “sale” is known to entice more people, which is why most businesses display “sales” they have going on outside of their business.

Drawbacks of Cash Discounting

  • Customers May Not Want to Shift To Cash
    Today, most cardholders prefer to use their card over cash. This means that many people do not carry cash. If your customers are opposed to paying by cash to get discounts, they could leave without making a purchase.
  • Signage
    To offer cash discounts, you must post signage in your place of business to let all customers know that they will receive discounts if they use cash to make a payment. The signage could be a deterrent for a customer to walk in, however, this is a requirement put in place by the card brands, and your business must follow it.
  • Implementation
    For a business to remain compliant, you must raise your posted or advertised pricing. This could be difficult to do. Therefore, it’s important to work with a Processing Partner like Payroc that offers you solutions to help simply this process for you and your business.
  • Education
    It is important that your employees are prepared and educated on this subject. Your customers may not be privy to paying a higher price for goods and services, which is why it’s imperative that your team understands how to mitigate any questions or concerns.

Questions to Ask When Shopping Cash Discount Programs

  • Does the program allow for a fee to be added to customers paying by a credit or debit card? If yes, that is a non compliant cash discount program.
  • Does the customer’s receipt have a line item that clearly states “Cash Discount” when customers pay by cash, check or gift card? Yes, we offer a compliant Cash Discount Program. Be sure to ask for an example of a customer receipt.

Benefits to Surcharging or "Credit Card Fee"

  • The obvious benefit of surcharging is that the burden of expense for processing Credit Cards will no longer fall on you. By passing a small cost of credit card fees to your customers, you’ll reduce your expenses while still allowing customers to choose their method of payment.
  • For businesses with thin margins, any cost reduction can be a big help.
  • You’re giving your customer the freedom to choose. They can choose to pay by Debit Card or Cash which removes the “Credit Card Fee”.

Drawbacks to Surcharging or "Credit Card Fee"

  • The biggest potential drawbacks to surcharging credit cards is customer opinion.
  • Your customers may dislike your business adding a Credit Card Fee when they choose to pay by Credit Card.
  • Be honest with yourself about the competitive landscape.
    • Are there other nearby businesses that offer the same goods or services that you do?
    • Can you compete with your competitors if your prices are higher due to a surcharge?
    • Be honest with yourself about the competitive landscape.
  • If your products or services are not items that customers need to purchase in-person, you could be losing business by adding an obstacle to purchasing from your website.

Questions to Ask When Shopping Surcharging Programs

    Q: Is a fee added to a debit or prepaid card at the check out by this technology?
    A: Not with our Compliant Surcharge Program.

    Q: Does this technology provide your business with the ability to bypass the “Credit Card Fee” if a customer is adamant about not paying the fee?
    A: Not with our Compliant Surcharge Program. The card brands stipulate that you must apply a fee to all card brands.

To learn more on cost savings, card compliance and same day funding.