When you open a business, you want to make it easy for your customers to pay you. You want to take credit cards, but the fees can be a bit overwhelming. There are ways to avoid getting excessive credit card processing fees while still giving your customers an easy way to pay you. One thing you can do is give them a discount for paying in cash.
Some credit card processing companies use a cash discount model to save merchants hundreds of dollars in fees a year.
What Is a Credit Card Processing Company?
Credit card processing companies are businesses that enable other businesses to take credit cards. They provide their clients with software that can be used for recording chargebacks, fees, and transactions. They also lease equipment to their clients, such as card readers. However, a worthwhile credit card processing company will be able to work with your existing equipment. An excellent credit card processing service will offer a cash discount program.
Cash Discount Programs for Customers
Credit card companies do quite a bit to get customers to choose the card they are offering. Many merchants will offer two different prices for items; one for people who pay with credit cards and one for those who pay with cash. This incentivizes people not to use credit cards. The merchant will make more sales, and the customer will save some money.
Some card companies can help you with the process of giving people who pay in cash a discount. When a person buys an item, the cash register will charge a small customer service fee instead of a processing fee. The system is programmed to discount that fee to people who pay cash. The credit card processing company may charge the merchant a small monthly fee for this service, but they often waive that fee for small businesses.
Hidden Benefits of a Cash Discount Program
There are a few benefits to cash discount programs in addition to the money you can save your customers and the profits you can make for yourself. Nothing is easier than paying with cash. You will never have to worry about a malfunctioning chip or a computer program that is down. You will not have a long line of angry customers waiting while you run a card over and over again in the hopes that it will go through this time.
Less Confusing Profit Margins
One of the most important things about being a business owner is understanding your profit margins. When processing fees are charged, they appear as a percentage of a transaction. This can make it look like your profits are going up and down haphazardly. When you cannot tell what your profit margins are, it makes it very hard to plan your budget.
Cash Is Easier
Nowadays, almost every store takes credit cards, and there are far more companies that can issue credit and debit cards. However, there are still some advantages to getting paid in cash. With cash payments, you will get your money right away. If your business is struggling, this can be very helpful.
You always want to give your customers all of the payment options you can. You never want to turn someone away just because you don’t accept the payment method they are offering you.
A credit card processing company that has a cash discount program can offer multiple options for payment. They can also help you with Visa and Mastercard compliance and help you with customer loyalty programs.
You have worked hard on your store, and you deserve to be successful. Having a cash discount program can help take your business to the next level.
short url:
