Cash Discount FAQs

Cash Discount Program

What Is The Cash Discount Program?


Simply put, a cash discount program makes it possible for businesses to benefit from the cheapest credit card processing fees available. A merchant can offset some or all of the present merchant service fees by passing on the processing costs to the customer. Basically, the merchant would increase the price of goods or, as in most cases, apply a service fee to all products sold.  Then, the merchant gives a discount to those individuals who pay with cash. 

By doing this, the merchant is effectively passing on the processing costs for the transaction to the customer when they pay with a card, and then incentivizing customer to pay with cash by offering an immediate discount. This makes sense for the merchant because their processing fees are dramatically reduced or eliminated.  

Will Adding a Service Fee Upset My Customers?


There have been studies done and surveys responded to that reveal nearly 80% of those questioned wouldn’t let a small fee affect their purchasing decision.  That’s not saying you’ll lose customers; it’s simply saying that only a fraction of your customer base would even give notice to it.

What’s also important to note is that the due to so many digital transactions and service fees for luxuries that have flooded the economy in the last 20 years, most people have become conditioned to service fees as a simple fact of life and have openly accepted this as ‘normal’.