SUMMARY 1. Cash discount programs encourage consumers to pay for goods with cash or check saving the merchant on processing fees. Merchants can offer to “remove” the built in fee charged to the customer for using an alternative form of payment. Or give them the option of “paying” the processing fee for opting to pay …
View a sample receipt. Ensure the receipt clearly shows the service fee or discount amount to the customer. Equipment- Make sure the equipment is able to accept all forms of payments- all card types, EMV chip cards and mobile wallets. Cash discount programs do not work on all POS Systems Make sure the provider has …
Reports from merchants show that 99% of customers disregard the convenience fee Example Benefits Table below shows the difference in 2 months Month 1 shows a standard processing month with merchant fees Month 2 shows the cash discount fee applied. The Monthly Effective Rate is at 0.00% because the fees are transferred to the cardholder. The …
Merchant is required to provide notification prior to sale of the service fee and discount is cash payment is made Multiple points of notification are recommended Reference to the program should be made verbally at the point of sale. Language such as “Would you like to save (X amount) today by paying in cash, or use …
The rate is determined for the Cash Discount Program, off of interchange costs. The Cash Discount rate is set to cover the costs of interchange and ensure the technology partner and processor makes some profit. The processor must make sure that average interchange costs are less than the Cash Discount rate, so they don’t lose …
Cash Discount Programs are charged a rate that is passed to the customer. The Cash Discount fee, or Convenience fee, typically ranges from 3.25%-4%. The merchant pays a Cash Discount program participation fee of around $60 per month. Full Convenience Fee Cardholder is passed the full Convenience fee Split Convenience Fee Cardholder and merchant split …
Apply a small customer service fee on all customer transactions Fee is removed if the customer pays with cash or in-store gift card Cash discount technology determines the service fee or discount amounts depending on the payment type A clear receipt detailing the service fee or cash discount amount is provided to the cardholder. Cardholder is allowed …
Allows retail merchants to save 80% or more on processing fees. Used to encourage merchants to pay with cash or check Cardholders receive a discount when pay with cash or check and is applied at the time of sale. Passes cost of card acceptance to the cardholder