CASH DISCOUNT
A cash discount is a pricing strategy where a business offers customers a discount on the price of a product or service if they pay with cash instead of a credit or debit card.
This practice allows businesses to offset the costs associated with processing card payments, such as transaction fees and interchange fees.
Cash discount has been around for years. Take advantage!
Cash discount has been around for years. Take advantage!
Menu Pricing
The business calculates the cost of each item, factoring in the average credit card processing fee. This total becomes the listed price on the menu.
Cash Discount
For customers paying with cash, the business offers a discount. This discount is essentially the amount saved by avoiding the credit card processing fee.
Customer Pays Fees
While it might seem counterintuitive, the customer effectively pays the credit card processing fee. By paying the higher, listed price for a credit card transaction, they cover the cost of the fee for the business.
BENEFITS
Transparency
Customers can clearly see the difference between cash and credit card prices.
Incentive for Cash
The discount encourages customers to pay with cash, reducing the business's processing fees.
Simplified Pricing
It eliminates the need for separate fees or surcharges.
Mutual Growth, Mutual Success.
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Merchant Nations Association is a Registered MSP/ISO of Elavon, Inc. Georgia [a wholly owned subsidiary of U.S. Bancorp, Minneapolis, MN]