Cash discount programs will benefit your business tremendously if you are a small retail business paying more than $20 fees for credit card processing. This includes businesses like restaurants, liquor stores, repair shops and more. Cash discount programs can help to pass on the credit card processing fees to your customer, and gives them a huge incentive to pay by cash instead. Here are some things you should consider when thinking about whether a cash discount program is suitable for your business.
Knowledge about Cash Discount Programs
Cash discount programs are different from convenience and surcharging fees. You should first find out if your processor offers cash discount programs. In some states within the U.S., surcharging is not legally permissible. However, cash discount programs have no restrictions.
When you take part in a cash discount program, you will need proper training and the appropriate signage to display in your store. Most importantly, you will need a reliable provider to help you with concerns or questions you may have. With the relevant knowledge and support, you will be able to handle any concerns your customer may have, and help them feel comfortable with paying the fee. These resources will be made available by a good processor. Processors should also provide assistance with troubleshooting equipment and other concerns.
Is There a Preference for Cash Transactions?
When you opt in for a cash discount program, you are giving customers an incentive to shop with cash over making payment with credit cards or debit cards. For small businesses that sell low ticket items, it helps eliminate processing fees and can help the business save a lot of money in then long run. If your current customers mostly pay by cash, transitioning into a cash discount program will be easy and seamless.
What is the Price of Your Items?
For businesses selling low ticket items priced around $10 to $15, cash discount programs are ideal. However, a point of consideration is that with the increasingly cashless economy, many consumers may not carry much cash.
Something else to consider is the amount of the processing fee your customer has to pay on top of the item they are purchasing. Typically, a fee is about 3 to 4 percent. If the items in your store are more than $50, it may discourage consumers from following through with the purchase. However, if your store carries low ticket items, chances are the additional fee consumers have to pay will not make much of a difference to them.
What is Your Targeted Demographic?
Do you know the demographics of your customers? Many years ago, carrying cash is very common. However, a large group of consumers today do not carry cash with them, and when they do, it is often not a lot. This must be taken into consideration when thinking about implementing cash discount programs.
Are you thinking about implementing a cash discount program to your business? Titan Merchant Services is a reliable and efficient provider that can help. We are always honest and transparent about our pricings, and are committed to go the extra mile to help our customers. Titan Merchant Services is a preferred choice by many businesses in the U.S. Feel free to contact us for more information about our cash discount programs today!