Almost 250 million Americans currently own a credit card– and you can be sure they’re expecting to use it when they visit your business.
If you run a small business, you’ve likely heard about a Cash Discount program, but you may feel confused about what that means. Cash Discount programs are becoming the new normal; you would be wise to get ahead of the curve now.
What Is A Cash Discount Program?
A Cash Discount program directs a merchant’s credit card hardware to add a service charge to a sale when a customer utilizes a credit card for the payment method. The result is a significant offset to the high costs of credit card processing fees.
Your business can cover the majority of the credit card processing fees by adding a Service Charge to all transactions regardless of payment type. Your credit card terminal will offer a discount of the Service Charge if the customer pays with a less expensive payment method, such as a check or debit card.
You may set your own Service Charge at a flat rate or a percentage of the sale. Wholesale Payment Partners can help you determine which option would best cover your processing costs.
Money is saved and it couldn’t be easier for the merchant.
Implementing A Cash Discount Program
Implementing a Cash Discount program at your business is simple. Based on your business type, we will be able to suggest whether a flat rate or a percentage will cover your processing fees. Generally speaking, larger transactions will select a percentage, and businesses with a more consistent transaction size will elect a flat rate. The final choice is yours.
Once you have decided on your Service Charge, our team will program your credit card processing device to elect the Service Charge option and provide you with the required signage to post at your business. Certain devices also allow the business to choose to waive the Service Charge for a customer. This will prevent the business from losing a valuable sale when a customer is not willing to pay the Service Charge.
With regard to Visa and MasterCard regulations, the receipts will clearly state the Service Charge or Discount amount for the customer. The daily batch report will also detail the total Service Charges for the business.
You win by reducing or avoiding your credit card processing fees and overall costs of doing business. Contact Wholesale Payment Partners today to get started.
Will a Cash Discount program work if my business uses a phone or tablet to process credit cards?
Yes! Wholesale Payment Partners offers the technology to offer the ability for a business that uses a mobile device with an audio jack reader to implement a Cash Discount Program.
This includes mobile swiped cards and those accepting EMV chip cards. Your business is on the go, so it makes sense to work with a processor who provides this new Cash Discount option for your mobile business.
If you look for the best in your processing and technology provider, you’ll be able to provide the best options for your customers.
Save Money With A Discount Program
A Cash Discount program is the best way for a business to get around the potentially overwhelming costs of credit card processing. By implementing the program, you can make your small business credit-card friendly and your customers happy.
Need more help in creating a credit card friendly business? Wholesale Payment Partners is your trusted advisor and helps business owners like you to avoid the costly credit card processing fees that eat into your profits. Contact us anytime for questions or to get started saving today!