Why go for the Gold Package with Cash Discount?
Imagine a world where you, as the business owner, are not the one paying your business’s credit card fees. With a cash discount program, this becomes a reality. To go into some of the details of how credit card processing works, I’ll go over a typical pricing structure you or your business is probably on. Every time a credit card is run through your machine, you as a business owner have to pay a percentage of that transaction to these three bodies:
- The Acquiring Bank – The bank that issued the credit card to the customer requires an interchange fee on each swipe
- Visa/MasterCard/Discover – The credit card company requires a “Dues and Assessments” percentage fee on each swipe
- Credit Card Processor – The merchant company actually responsible for billing statements and moving the money from the customer’s bank account to your bank account
It’s no wonder that since every swipe requires three different companies to get paid, running credit cards can become a very expensive thing for a business to do. However, with a cash discount pricing program, you as a business owner can simply transfer these extra costs onto each individual customer instead.
As your credit card volume increases, your credit card bill increases as well. However, looking at each individual swipe, the fee is pretty miniscule, which is why it is so easy to just have customers pay that extra dollar or two.
Here’s an example, say you own a hardware store and you sell one product for $10.
Let’s say you had a great month and sold 10,000 products, you’re looking at $100,000 in revenue. But, if all the customers paid with a credit card, and your rate is 4% for example, that’s $4,000 you would have to pay off of that revenue alone. However, with a cash discount program, that 4% fee on each credit card transaction, would simply be transferred onto the customer. So every customer that buys the $10 product will just end up paying $10.40 instead, a miniscule $0.40 extra for the customer, making your new credit card bill a whopping $0.
If you’re concerned about customers complaining about the price increase, just feel free to let them know, if they pay with cash, they’ll receive the $10 price no questions asked. This is essentially why the program is referred to as “Cash Discount.”
In almost all cases of businesses choosing the cash discount program, the extra fee is insignificant. Customers rarely ever complain, and if in a 1 in 100 chance they do, they’re almost always willing to solve the problem themselves by paying cash.
No more days of dreading the credit card processing bill to come in where you’re notified of how much money is being taken from your bank account, and never being given an explanation as to why. With the cash discount program, you’ll run credit cards for completely free and won’t ever have to worry about that statement again.
The cash discount program is included in our Gold Tier package, click here to find out more about our product tiers, or if you’re ready to submit a request, click here.