What is the Cash Discount Program?
- Consumers are notified via signage at checkout that a percentage rate customer
service charge is applied to all store sales; and as an incentive for paying with
cash, consumers would receive an immediate discount equal to that percentage
rate customer service charge. (see signage example in this presentation)
- All prices posted within the business represent the Cash Discount Price. The
merchant is not required to change price tags on their inventory when they
administer their Cash Discount Program signage as outlined above.
- At the point of sale, a Non-Cash Adjustment (percentage rate) is applied to the
sale and displays on the merchant copy and customer copy of the sales receipt.
- The total settled transaction amount is the sum total of the original sale amount
and the Non-Cash Adjustment amount.
- The merchant account is setup on Daily Discount Billing so that the discount rate
applied to the pricing of their merchant account is deducted from the batch
- The net result for the merchant is the experience of significantly reduced
processing costs at month end, while receiving the full deposit of their original
sale amounts on a daily deposit basis.
In the month of August 2018 we saved our clients over $100,000 in fees this month and we just started the program.