Consumer Pay Program
This is sweeping the nation!
The credit card companies have approved merchants to offer a cash discount to anyone paying with cash or checks in a face to face, card present environment, regardless of industry type. Depending on your monthly sales volume and average ticket price, this program has the potential to remove virtually all of your monthly card processing fees.
Think of it as a toll road; those choosing the convenience of the new 8-lane expressway (or use a card) pay. Likewise, when we take the traditional road to work (pay with cash) we don’t, and we shouldn’t be penalized by having to pay the same as those who generate the card processing fees. The Cash Discount Program is different from the Visa/MasterCard approved Surcharging Program that was designed for governmental fines, taxes, sanitation, utilities, and schools.
CASH DISCount program FAq
Customers pay a flat percentage of the sale, shown on their receipt. The percentage is determined by the merchant’s monthly total sale volume and average ticket. Merchants pay only a flat $55.00 for countertop or wireless equipment and network. Your savings are easy to calculate; if you paid $555 last month, you’ll save $500.00. If you do the same each month, that becomes $6,000.00 over 12 months!
How do you respond when you pull in to fill your gas tank and see a cash price and a card price? You would weigh your options and, if you have the cash, you can save a dollar or two. If you choose the convenience of a card, the difference is paid and you don’t think anything else about it. The Cash Discount Program was approved in 2013 and is rapidly becoming part of the landscape. It is flowing over into more than only gas pumps every day in the US.
The Card Association (Visa, MasterCard, etc.) requires merchants to have visible signage informing customers of The Cash Discount Program. The credit card terminal will print a line item that shows the service fee being generated as the result of using a card; this is the amount being saved by your cash customers.
Equipment options range from the simple, counter top PAX S80 to wireless units, often used in the service industry, to POS Systems in two configurations, just the size of your business.
The Association has strict guidelines about the only ways cash discounts may be implemented by merchants: 1) with the correct signage and 2) the amount displayed on the terminal receipt. If the cash discount isn’t applied according to The Association’s guidelines, and a customer complains, The Association can then cancel merchants’ accounts, taking away their ability to accept any credit card.
If everyone at your place of business is on the same page, and your customer is told, “Businesses have ever-increasing overhead. We’re giving back because we don’t think it’s fair to charge card processing fees to customers who pay with cash.” Once explained, most customers will understand.
Granted, The Cash Discount Program is still relatively new and it may not be for all merchants. We, at CCPS, have been in Merchant Services for a long time, helping merchants across the country accept cards the traditional way for many years, and this is still available for all of our merchants. The sign is removed and terminal reprogrammed. No matter which program you choose, when working with CCPS, you’re always guaranteed the EXCELLENT service and pricing we’re known for.