Thinking about joining a cash discount program but unsure what its value is to your business? Cash discount programs are highly beneficial for many businesses, especially if the primary modes of payment in your business are cash and credit cards. Although payment methods are continuously increasing over the years, many still choose to pay with cash. Read on to find out more about a cash discount program and the benefits it can bring.
Cash Discount Program
A cash discount program provides a cash price and a credit price to your customers. If the customer opts for cash payment, they get to pay the lower price. However, if they opt for credit card payment, they will have to pay a higher price as the credit card processing fees will be borne by them. This way, your business will not need to absorb the processing fees, thus encouraging your customers to pay by cash while still giving them an alternative to pay with credit card.
What are the Benefits of a Cash Discount Program?
Cash discount programs are beneficial to many types of businesses. This includes retail stores, hair salons, restaurants, service professionals, repair shops and more. Cash discount programs help to lower overhead for small business, especially since credit card processing fees are a significant overhead for smaller businesses. Here are some other benefits of cash discount programs:
- Removes the need for your business to pay card processing fees: Cash discount programs will remove the need for a business to pay processing fees as the fees will be borne by the customer should they choose to pay by credit card. This helps businesses to save a lot, and make better use of these funds in other areas like operations, marketing and more.
- Profit margins are kept constant: In many cases, processing fees are a percentage of the transaction’s value. As such, there is a lot of uncertainty and volatility for business owners trying to plan for the future. With cash discount programs, profit margins are kept constant as business owners do not need to consider processing fees.
- Customers are able to choose: With a cash discount program, your customers are able to choose between two prices. If they choose to pay by cash, they can pay a slightly lower price. If they choose to pay by credit card, they will need to pay the processing fees. This gives customers more options, and may even attract bargain hunters who deem that paying by cash is a good deal.
- Easy Payment Process: Cash discount programs make the entire transaction easier for both the customers and the business owners. As more customers opt to pay with cash, it means that there is a smaller chance for pricing disputes, fraud, data breaches and other complications arising from card payment.
If you are looking to join a cash discount program, look no further than Titan Merchant Services. No matter what type of business you are, you will benefit under Acceptcreditcard4free, our alternative to cash discount programs. We strive to give our customers a pleasant experience with us, and will not hesitate to give you any advice on queries you have. Contact us today for more information about our cash discount programs.
