A cash discount is a type of incentive offered by merchants in which they provide a discount to customers who pay with cash. On the other hand, non-cash price adjustments, including credit card processing fees, are typically passed on to the customer in the form of higher prices. By offering a cash discount, customers who choose to pay with cash can save some or all of the additional cost incurred when paying with a credit card (depending on the discretion of the owner).
Our technology enables businesses to implement cash discount programs while remaining compliant with the guidelines set by Visa, Mastercard, and payment processors.
While cash discount programs have been available for years to certain industries such as higher education, municipalities, gas stations, and utility providers, more and more independent business owners are now adopting these programs as well.
Cash Discount is legal due to the Dodd-Frank Wall Street Reform and Consumer Protection Act that was released in order to protect the business owners after the 2008 recession.
The Dodd-Frank Wall Street Reform and Consumer Protection Act contains two provisions that impact card acceptance by US merchants:
• Using discounts to incentivize preferred payment types.
• Setting thresholds for the acceptance of credit cards for payment.
These items do not have explicit “in force” dates, so should be effective now that the bill was signed into law on July 21, 2010.
Under the law, payment card networks are restricted from limiting merchants’ ability to offer discounts to incentivize customers to use payment types preferred by the merchants. Merchants would have legal protection under the law to offer customers discounts to pay with cash, check, or debit instead of a credit card. Merchants would not be able to offer a discount for payment with one card brand instead of another, or by cards issued by one issuer instead of another issuer.
Once you’ve determined that a cash discount program could be a good fit for your business, I will help develop a customized plan that meets your specific needs. This might involve adjusting your pricing strategy, updating your point-of-sale system, and providing training and support to ensure a smooth transition to the new program.
By working closely with me and implementing a cash discount program that is tailored to your needs, you can save money on credit card processing fees and improve your business’s bottom line. So if you’re ready to save money and have the program benefit your business, don’t hesitate to reach out and get started today!
No, I can also help you with Traditional and Hybrid (Surcharge programs) if you believe it fits more with your company.
EZPay prides itself on customer service and they will respond to you in 30 seconds or less. We also have Spanish speaking people to help.
You might have come across processing companies that offer fancy equipment, but the truth is, your business may not actually need all those bells and whistles. In fact, those extra features could be driving up the cost of processing fees unnecessarily. At EZPay, we believe in providing you with the tools you need to process payments efficiently and affordably.
That’s why we offer a free terminal for you to use while working with us. This terminal provides all the basic functionality you need to process payments, without any unnecessary add-ons or features that could be driving up costs. Of course, if you do need additional equipment to help with billing, accounting, or other tasks, we have options available to meet your needs.
The bottom line is that we believe in providing you with the best value for your money. By keeping things simple and streamlined, we can help you save money on processing fees while still providing the tools you need to run your business effectively. So if you’re tired of paying too much for processing fees and equipment you don’t need, consider switching to EZPay today.
And If you are wanting to know with numbers the difference click on the following link to compare us with Square or others.
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