CASH DISCOUNTING & YOUR BUSINESS

As businesses are facing extreme difficulties this can be a permanent or a temporary solution to get your business through these unprecedented times. With the cost of everything going up businesses are facing a need to increase prices on their products and services. Some, like restaurants, will have exorbitant cost in reprinting menus and everyone will spending hours and lots of money changing marketing material whether it be a website, social media promotions, hand out materials.. From payroll to products, things just keep going up. If this could be the difference of staying in business it is definitely something to think about.

To be compliant all you need to do is post proper signage (provided) and add the percentage (TIPICALLY 3%, 3.5% or 4%) to your prices. So when you quote your services the fee is built in. Then you can offer your customers a discount if they pay with cash. This saves you money and AND increases your cash flow. Ask me about the new twist with this program that you can actually pay the fees if they use PIN debit. By paying the much lower fee associated with PIN debit you could offer them no fee for cash AND PIN debit. I can even help you cover most of the PIN network fees.

Here is the breakdown as to what this looks like:

This example has been done with an auto repair business and will be happy to show you an actual statement for you to see how I know the amount of sales processed as debit cards taken in a month. Signature debit and PIN debit are not the same cost. PIN Debit transactions go through networks like Star, Pulse, Interlink and others instead of the high fees charged if run as credit cards.

If your sales are $45,000.00 and your fees for the month are $1000.00 your effective rate is 2.22%

To find your effective rate simply divide all the charges into your sales. (Not just from your statement from your checking account as some companies hit you with other charges. You have to add it ALL up to get your true effective rate.)

Scenario 1

If you went on the Cash discounting charging the customer a 4% service fee on all cards your monthly statement charge would be $60.00 ( the flat $60.00 and this includes free terminal with overnight replacement warranty, cash discounting software and PCI certification. Flat fee will never change. savings of $940.00 a month / $11,280.00 annually.

Scenario 2 with PIN DEBIT

If you implemented Cash discounting with pin debit and charged the service fee for CREDIT card transactions only and you paid the 1.25% on debit cards, still giving your customers a free way to pay with a card but they must put the pin # in.

Out of the 45,000.00 … 20,000.00 of them are debit card sales. For the 25K processed as credit your cost is a flat $60.00 a month. The 20K processed as pin debit with PIN# you pay 1.25%

$60.00 +$250.00= $310.00 ... this way you are saving $690.00 a month / $8280.00 annually.

Example : .40 cents on a $10.00 transaction OR $4.00 on a $100.00 transaction to your customer. I personally am happy to pay this to help my favorite businesses make it through these unprecedented times.

Standard Cash Discounting explanation:

Cash discounting program helps all business types including B2B. Companies virtually eliminate their monthly card processing costs. If your customer pays in cash you simply take the % off for cash. We will provide you with free signage that will inform your customers that you are on a cash discount program (by law, all merchants must display clear signage disclosing that they offer cash discounting).

We are helping establishments like yours save up to 90% in annual card processing fees. The result? You can realize significant savings to help grow and expand your business! If you find that our Cash Discount program isn’t working for you, we’ll quickly switch you back to Interchange Plus processing.

Our cash discounting smart terminal accepts all payment types –credit, EMV chip cards and mobile wallets with internal PIN Pad. Also you can send invoices and receipts via text and email. They can click on the link and put their card in and pay you from anywhere.

We provide 1 (WIFI capable) smart terminal with replacement warranty per location. Additional terminals can be purchased for $199.00 + tax.

How Cash Discounting Benefits You

Reduce Cost - You will save thousands on your monthly and annual processing costs.
Legal Program - Our cash discounting program is legal, giving you piece of mind as you accept payments.
Our cash discounting program is fast and simple to set up with plug-and-play equipment
Flat Monthly Fee - No more interchange mark ups. You pay the same flat fee each month and will NEVER increase.

FAQ'S

What is a Cash Discount?
A cash discount rewards customers for paying in cash. Your customers always have a choice as we will provide free signage.

What equipment is needed?
We provide a state of the art smart terminals with an internal PIN pad. Smart terminals will allow you to text or email invoices via a link for customers to enter their card info.

You can also email and text receipts. It gives you the capability to offer reoccurring payments / billing if want to offer payment options too.

Is Cash Discounting legal?
Yes, Cash discount programs do not discriminate one card over another and reward customers for paying with cash. Cash discount programs have been available for years to higher education, municipals, gas stations and utility providers, so it is not a new concept.

Is it a surcharge?
No. Surcharges are subject to the laws of each state and must work in accordance with each brands’ operating rules. Cash Discounting is an attractive option because it is fast and easy to set up.

What payments can be accepted?
Credit, Signature and PIN Debit, mobile wallets, such as Apple Pay and Google pay.

How much can I save?
Savings vary, but most merchants can expect to save 90% of their annual processing costs.

How are my customers informed?
Place provided signage in visible areas.

Is the solution PCI Compliant?
Yes, this program is fully PCI compliant and also complies with all card brand rules. The flat monthly cost is all you will ever pay and we do your annual certification for you.