Business owners all over the world are checking out the Cash Discount or Dual Pricing program to totally eliminate payment processing fees. It’s not hard to understand why, since most business owners are losing anywhere between 2%-4% in credit card processing fees with every transaction.
In a day and age where everyone wants things cheap and instantly, like next day funding, it’s no surprise that cash discount/Dual Pricing credit card processing is on the rise. Cash discount processing is gaining in popularity in the United States, but if you think about it, you’ve probably seen them around for decades. Most other countries have been doing it for years, including Mexico and Canada.
Gas stations have used cash discounts on the price of gas for years. If you pay with cash, it costs a little less per gallon. If you pay with a credit card or gift cards, the cost is as listed on the sign and on the pump. No difference for your busienss customers!
Cash discounting works by giving a discount to all customers who choose to pay with cash instead of a credit card or debit card. Customers who choose to pay with a credit card will pay the marked amount because the processing cost is built into the cost of the product. This allows the business owner to get the full payment from the customer and not incur any credit card processing fees.
Saving thousands of dollars a year, on fees, that each customer can handle makes dollars and sense! Customers earn miles and rewards that cost you, so why not give them the option to pay by cash and save them money, or pay by card and earn their rewards.
Have questions? Contact KenGivens@USmsTexas.com
512-848-1069