Cash Discount Program | Westchester Merchant Services

What is Cash Discount Program / Dual Pricing?

Cash discount / dual pricing programs enable merchants to offset the credit card processing fees that they incur, so they will see a significant reduction in their processing bill each month.

A cash discount / dual pricing program relates to the methods merchants are applying in their businesses to pass the costs of accepting credit and debit cards to their customers or cardholders. The merchants adjust their posted prices through simple signage in the business location and offer discounts to the customers who make cash purchases. An example of Cash Discount Program is when you see two prices at a gas station.

How it works

A quick example: If you charge 4%, processing fees on all items, the formula will indicate that the services or products you should sell at $100 will retail at $104 unless your customer uses cash. In that case, the customers making cash purchases will only pay the original $100. The totals are reflected on the customer’s receipt.

Since your customers pay the fees when using a card for their purchase, the merchant no longer takes on the additional cost for accepting credit and debit cards, as tender. It also places a value back on cash sales!

What are The Benefits of Cash Discount / Dual Pricing Credit Card Processing?

Reduced Fees

Encourages Cash Payment

Chargeback Reduction

After reducing the number of customers using credit cards in your store, chargebacks will also diminish. If chargebacks have been a massive problem for your store, the decrease might help you minimize the card fees you pay because you will be at a lower risk.

Complete processing fees reduced is essential to most merchants. Merchant level salespeople benefit from the programs due to the above average margins associated with them.

Conclusion

Will a cash discount reduce the monthly processing bills? Yes!

Some merchants will see great savings on their monthly bills. That is because of the variations of interchange prices. Also, Cash Discount / dual pricing programs are not available for Pin Debit. Fortunately, most business owners witness 95-100 percent decrease in their monthly bills. After adopting the program, your monthly statements will show near-zero processing costs for services and goods you sell.