Are you considering opting into a cash discount program but don’t know where to start? Truth is, cash discount programs can bring a ton of benefits to your business – especially if the majority of your customers are already paying with cash or credit cards.
Despite the recent surge in payment methods, the number of customers that continue to make purchases with cash is substantial. For this reason among others, businesses choose to switch to a cash discount program. We’ll go over the ins and outs of how a cash discount program works and how it can help your business.
What is a Cash Discount Program?
A cash discount program works by providing your customers with a cash and credit price. If the customer pays by cash, they receive a lower price. If they pay by credit card they pay the slightly higher price, which includes your cost of processing. Customers that pay with cash essentially receive a discount because they will receive a lower cash price. The end result? You eliminate your business’ credit card processing fees and encourage your customers to use cash, while still providing them with the option to pay by credit.
Benefits of a Cash Discount Program
Many different kinds of businesses choose to work with cash discount programs because of the benefits. These include hair salons, retail stores, restaurants, repair shops, service professionals, and many more.
For starters, credit card processing fees are a major overhead for small businesses, and one way for businesses to keep their prices low is to lower their overhead.
Eliminate Credit Card Processing Fees
The biggest reason businesses switch over to a cash discount program is because they can eliminate most – and in some cases all – of their credit card processing fees. The customers that pay with a credit card also pay for the credit card processing fees. This is a huge saving for small businesses that can then use these funds to expand operations, expand marketing efforts, or simply grow their savings.
Gives Your Customers More Choice
When you work with a cash discount program, you are essentially offering your customers two different prices. Customers that pay with cash will pay a lower price – hence the “cash discount”. Customers that choose to pay with a credit card will pay a slightly higher price to cover the cost of processing. Your customers will ultimately have more options. You’ll also have the benefit of attracting bargain hunters!
Keeps Your Profit Margins Constant
Traditional processing fees are charged as a percentage of every transaction. This creates a lot of volatility and uncertainty for business owners looking to budget or plan ahead. Cash discount programs eliminate this issue, so you’ll have a more consistent view of your profit margins.
Simplifies the Payment Process
Cash discount programs ultimately make the payment process more simplistic for all parties involved. When customers are encouraged to pay with cash, you’ll significantly reduce the risk of chargebacks, pricing disputes, data breaches, fraud, and other complications.
From mobile payments to contactless payments – modern technology has increased the scope of payment methods. Nevertheless, there are still some benefits to holding onto good old-fashioned cash. When customers pay with cash you receive that payment instantly. There’s no waiting around for the transaction to process. However, you never want to strip your customers of the ability to pay by credit, which is why the Cash Discount Program is the ideal solution for all parties involved.
Choosing the Best Cash Discount Program
Finical is a leading credit card processing company that offers one of the most incentivizing cash discount programs on the market. Finical’s cash discount program eliminates up to 100% of processing fees while enabling businesses to offer their customers a larger variety of payment options.
Finical’s technology makes it easy for you to offer your customers cash payments, contactless pay, mobile pay, gift cards, and credit card payments without charging you any of the hefty processing fees. By eliminating these fees entirely, you can save your business thousands of dollars per year.
Finical also offers 24/7 customer service, transparent pricing, no setup costs, and will walk you through the setup process with a product professional for free. You’ll also have access to cash advances, free equipment, and other perks. Get in touch with Finical to learn more about how a cash discount program can boost your business!