Save Thousands of Dollars with Cash Discounting/Dual Pricing!
In the world of payment processing, a new trend called “Cash Discounting” or “Dual Pricing” is quickly gaining popularity. This innovative program offers significant benefits to merchants, potentially adding thousands of dollars to their bottom line. After years of Visa and MasterCard prohibiting merchants from charging more for credit card payments, the rules have changed. Now, you can eliminate all of your payment processing fees!
What is Cash Discounting and Dual Pricing?
Cash Discounting and Dual Pricing are essentially the same program under different names. The concept is straightforward: merchants display signage explaining that customers can save money by paying with cash, while those who choose to pay with credit or debit cards incur an extra fee. This fee can be up to 4% and covers the convenience of digital payments. It’s a win-win situation where customers have the choice at the register.
Legal Requirements
There are some legal requirements merchants must follow:
- Transparency: Merchants need to clearly display signage that informs customers about the extra fee for credit or debit card payments and the savings from paying with cash.
- Restrictions on Debit Cards: It is illegal to charge the extra fee for pin-based debit card transactions, as these are considered cash transactions deducted directly from the consumer’s bank account.
Why Consider Cash Discounting?
Merchant Benefits
- Immediate Cash Flow: Merchants gain immediate access to cash, improving their cash flow.
- Reduced Chargebacks: There's a lower risk of chargebacks on credit card transactions.
- Enhanced Trust: Transparency with customers through clear signage builds trust and strengthens the merchant-customer relationship.
So merchants, what are you waiting for? Put thousands of dollars back in your pocket!
Consumer Benefits
- Savings: By opting to pay with cash, consumers can save money.
- Convenience of Choice: Consumers who prefer the convenience of digital payments can still use their credit or debit cards, albeit with a small additional fee.
- Eliminating the Risk of Carrying Cash
- Tracking Spending: It is easier for consumers to track spending from credit card statements than it is to track spending with cash.
Implementing Cash Discounting
To legally and effectively implement Cash Discounting or Dual Pricing in your business, follow these steps:
- Item Pricing: Ideally, your establishment’s displayed prices on items should reflect the credit card pricing. However, changing prices on menus and in brick-and-mortar stores can be time-consuming and costly. An easier method is to post clear signs explaining the extra fee for card transactions and the discount for cash payments. In restaurants, adding stickers to menus can inform customers about the extra fee for card payments.
- Dual Pricing needs to be displayed at the POS terminal or register: The choice is legally required to be displayed at the point of purchase on the credit card terminal or point of entry device.
Get Started Today!
Not all POS tablet systems and credit card terminals can be programmed for Cash Discounting or Dual Pricing. To find out how to eliminate ALL of your credit card processing fees, call us at 505-296-2847. Start today and begin putting thousands of dollars back in your pocket!
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