Watch for tricky companies charging for Cash Discount Program. Guest Blog from Card Payment Solutions USA!

Make sure when signing up for Cash Discount Programs you are getting the best deal possible. You should not be paying a monthly fee. What to watch out for is the Disclaimer many providers add.

Disclaimer example:

You’re assessed a $25/month if volume is under $5000. $50/month if volume is $5000 to $9999.99 and $100/month if your volume is $10000+ program fee. Your monthly processing fees will be offset by the customers service fee. You will display the sticker provided to me by Card Processor. The Sticker informs my customers of the cash discount incentive and service fee cost. Your processing fees, annual fees, PCI fees will are no longer charged. You may receive chargeback fees. You will receive a call to go over details. You may need my machine upgraded to one which is appropriate for this program.

This is a charge of companies being greedy. At Card Payment Solutions USA we know we make enough to cover all fees in the program so we do not charge a fee due to volume.

Zero Credit Card Processing Fees

Offering our cash discount program to customers, businesses are able to cut 100% of their processing fees. In this situation, merchants must display a customer-pricing notice. This will inform each customer about the customer service fee that is charged on all transactions. An easy example. A merchant charges a 3.99% service fee. On each item the notice will reflect that a product or service that lists at $100 will actually be $103.99. That is unless the customer is paying with cash. In this case, the customer paying with cash will receive a discount. The service fee charge goes away and they only pay the original $100. Convenience or surcharge fees are not the same as a cash discount program. You may be asking yourself, “Would it not be easier to settle with increasing the price by 4% and call it a day?” That’s a fair question, and, the result may or may not be the same in the end. Yet, the transparency with the cash discount program will be a detail that is not lost on your customers. The Cash Discount Program is an automated program. Where surcharge fees are manually calculated. This requires pricing increases across the board. That results in customers always paying “full” price. Customers generally favor the option of saving by paying with cash. In short, show me someone who doesn’t like to save money on purchases and I’ll show you a liar. Give the people what they want and your business will benefit in return.

A Marketing ToolThe cash discount program is a great marketing tool. It will attract new customers. Customers love the word “sale.” Most stores will display a “sale” sign year round to lure customers into their store. Getting people in the store, sale or not is the ultimate goal. They come in for the sale items and walk out with much more. Although a 3.99% discount across the board does help merchants. The cash discount program is a powerful tool when implemented. Being able to cut up to 100% of processing fees is something that is alluring to most merchants. This is also something that merchant level salespeople (MLSs) enjoy as well. The higher than average margins that come with the program mean they make more as well.

Want to save all your processing fees without any hidden fees?  Email us at to talk directly about your business.

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