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You have to love technology! Today, it helps us pay for things in a multitude of ways – online, mobile, debit card, credit card, check, and cash. For the younger generations who are tech savvy, it’s convenient. However, merchants wanting to use technology may find overhauling their existing software and hardware to integrate a complex payment method challenging, to say the least. But to maintain a viable business, what can a small business owner do?

Add to that, there are fees for credit card processing. Accepting debit and credit cards can lead to higher costs for many merchants. Business owners already have a thin margin.

Cash Discount Systems Come To the Rescue

A cash discount system versus charging extra fees for using credit cards not only sounds nicer, it is! Is it even legal to charge an extra fee if the consumer wants to use a credit card or debit card?

Recently, a court case was settled in New York that dealt with processing fees for credit cards. As a result of this ruling, consumers can now bear the burden of surcharge fees being charged to New York retailers. This applies as long as, in monetary terms, the added amount is clearly disclosed.

Additionally, Texas, Florida, and California (as well as other states) are allowing retailers to pass on or share the burden of credit/debit cards by overturning surcharge bans. The fact that only a handful of states is on board with this demonstrates how controversial passing on surcharge fees truly is.

On the other hand, legal in all 50 states are cash discount programs – and customers love them!

How does it work? A merchant posts a price for a product or service. If the consumer offers cash as payment, the merchant provides a discount or lower price. It can’t, legally, be the other way around in all states. It must appear as a discount, not an extra fee.

Everybody Wins

For both customers and retailers/merchants, the benefit of a cash discount program is indisputable, for the most part. Here are some of the pluses:

  • Less debt – Merchants are able to reduce credit charge offs and retain more profit. If offered a cash discount, consumers may not rack up so much credit card debt.

  • Simple – For customers and employees alike, a discount program is easier to understand.

  • Reduced fees – Eliminating or reducing credit card fees is the most obvious benefit. On small purchases, consumers can avoid interest rates on credit. Merchants need not worry about their profit margins being shredded by processing fees.

Count On TITAN Merchant Services

How does a merchant service get to be the backbone of small businesses, for over 30 years, throughout United States? TITAN Merchant Services knows it’s all in what you offer your clients and how carefully you examine their needs for the highest level of effectiveness. To help our clients achieve their goals, we carefully craft the most effective solutions after examining their vision, their mission, and their needs.

We take the time to get to know you. That’s why we do what we do so well! For every single client, we customize our services.

If you have any inquiries regarding our merchant services, please contact us today.