What Is a Cash Discount Program? A Simple Guide for Business Owners
Introduction
As credit card processing fees keep rising, many businesses are looking for ways to cut costs. Enter the cash discount program—an easy way to encourage customers to pay with cash and save on processing fees. But what exactly is a cash discount program, and how does it work? Let’s break it down.
How Cash Discount Programs Work
A cash discount program allows you to offer customers a small discount when they pay with cash instead of a credit card. Here’s how it typically works:
- At Checkout: A service fee is applied to all purchases by default.
- Payment Options: If the customer chooses to pay with cash, the service fee is waived, giving them a discount.
- The Result: You save on credit card processing fees, and customers save a little extra.
The program is transparent and easy for customers to understand. Plus, they get to choose how they want to pay, making them feel empowered and potentially saving your business up to 90% on monthly processing costs.
