Cash Discount program

Cash Discount Pricing

More Businesses Doing The Cash Discount Program

Cash Discount Pricing allows an incentive that a merchant offers to their buyers to pay with cash. Similar to Gas Stations, the options you pay for gas.  For the convenience of using a credit or debt card. The Cash Discount Pricing allows Merchants to pass along their credit card processing costs to their customers if they pay either with cash or credit.  This effectively eliminates a merchant’s credit card expense except for a small maintenance fee.

Currently available in US only.

Pays with Cash

Pays with Credit

  • A customer purchase’s an item for $20 and decides to use cash. 
  • You do nothing and accept the cash like normal.
  • Now if the customer decides they want to use a credit card for a $20 purchase.
  • At the time of sale you would swipe their card and the credit card terminal would add an additional 4%  (you can choose to higher that up to 4% if you wish) to the total which would be $20.88.  
  • Fees are collected daily to completely offset all your processing costs. 

What Merchant would like this?

This is NOT for all merchants.  Some might worry about angering or driving customers away.  Cash Discount Pricing tends to be most appealing to small ticket merchants, whose customers would incur a relatively small charge for using the cash or paying Cash.

  • Do not refer Cash Discounting to a “Surcharge” to customers.  While this is effectively the same thing, surcharging is still considered illegal in several states.  Cash Discounting Pricing is not illegal in ANY state.  The merchant is effectively charging 4% less if their customers pay with cash instead of using a credit card.
  • If the merchant want to charge something other than 4%, this information needs to be forwarded so the right amount needs to be collected from the merchant to fully offset what they are charging their customers.
  • Do you want more cash payments? – A cash discount will lead to more cash purchases which are a good thing if you want to reduce the impact of processing fees. However, one thing to keep in mind is that customers that use credit cards tend to spend more money. And that’s it!
  • Please do not hesitate to contact us with questions.  Speak to your support team for any concerns.

How do you do it?

Setting up a merchant is with Cash Discount Pricing is relatively easy.  They need to sign up and broad in a very specific manner.

  • Price the merchant with a flat rate for all cards at 4%, plus $30.00 as a monthly fee.
  • The merchant must post a flyer in several places prominently throughout their business, and particular at the checkout counter.  Noting their credit card customers will be paying 4% above the Cash Discount Price.
  • Set up merchant for daily discount so they don’t get hit with a big bill at the end of the month.
  • You must use a Clover Mini or Clover Station to do this.  In Clover settings there is a “Service Charge” feature that needs to be enabled.  This needs to be set at 4%.

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