The cash discount program is an ingenious way to offset your merchant service fees without increasing your pricing. Most merchants who use the cash discount program pay NOTHING for their credit card processing. Period. You’re probably saying “how does the cash discount program work? It sound’s too good to be true!”. Let us explain.

First of all, the cash discount program is a new account type that is growing in massive popularity across the country. Though not right for all business types, the cash discount program works extremely well with many business models.

Here’s how a cash discount program works:  The credit card terminal will automatically implement a small customer service fee to all customers while discounting that fee to customers who pay in cash. This is where the program gets its name!  The customer service fee is equal to the cost of processing each transaction, thus eliminating the merchant’s bill.  The account is completely free for merchants processing over $5K/month and only $19.99 for accounts processing under $5K/month.  *Our cash discount program is within the guidelines of Visa, MasterCard, State and processor regulations.

Provide Cash Discounts To Customers

Some business types work better with cash discount than others. Many times it comes down to whether or not the customers would be upset with having a service fee included in their transaction. The business owner would ultimately know best whether this type of payment processing account would work well for them or not. There are, however, certain industries that generally work very well with the cash discount payment processing account. For example, “service-based businesses” generally work very well – automotive shops, HVAC, landscaping, electrical, etc.

No, the cash discount program is not the same as surcharging.  They seem extremely similar which can make it confusing for merchants.  Heres the difference between the cash discount program and surcharging:

Surcharging Charging a customer an extra fee for paying with a credit card. This is, in essence, disincentivizing the customer to use a card.

Cash Discount –  Adds a service fee to “all transactions” but applies a discount equal to the service fee if the customer pays with cash or check. This is, in essence, incentivizing the use of cash.

Paying With Cash Discount

E-commerce businesses can also benefit from a cash discount program. While cash discount programs are typically deployed for in-person transactions, many payment gateways and e-commerce systems can accommodate cash discounts too.  But how is that possible, you may be wondering? Cash can't be accepted online, so how can I have a cash discount merchant services program for my e-commerce store? Although you can't take physical cash, you can offer your customers a discount for using ACH or electronic checks (e-checks) for payment, similar to how you can offer a discount for cash payers in person.

While a cash discount merchant services program might not be right for all businesses, we believe in giving merchants a choice in the payment acceptance program that best suits their company and customers.  Whether this is a traditional program like interchange-plus payment processing, cash discount, or surcharging, we have solutions that will help you feel great about accepting payments online and in person.  

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