A cash discount program is a way for merchants to pass the cost of card acceptance along to cardholders. The merchant will raise all of their prices via simple signage in their location, and then offer a discount to customers paying with cash.
Reduce your cost of card acceptance with Integrity’s Cash Discount Program.
- Decrease your operating costs. Cover up to 100% of your processing fees.
- Free up resources. Virtually eliminate one of your largest business expenses, use that cash to invest in your business!
- Works with the latest terminals. We offer state of the art EMV terminals with all of the appropriate programming to allow you to offer Cash Discounts.
Cash Discounting is simple, but you need a few things to get started. Follow these easy steps to get set up.
- Sign up! We will update your processing agreement (or sign a new one with you).
- Update your terminal. Your terminal needs to print an additional line item on credit and debit card receipts to add the additional fee to all purchases.
- Post signage at your point of entry and point of sale. We’ve put some ready-to-print signs on our Online Portal or you can get them from your sales partner.
Integrity can help you virtually eliminate the fees you pay to accept credit cards through our cash discount program. Get started today to improve your bottom line or contact us at 888.477.4510 to learn more.
Frequently asked questions
Q: How does Cash Discounting work?
A: This program is a way for merchants to offset most of the cost of their processing fees. Merchants implement a service fee that applies to all products, and then give a discount to customers who choose to pay with cash. Customers who pay with cash will avoid the additional fees and all others will see a line item added to their receipt. To start using Cash Discount, merchants must post signage alerting customers about the fee applied to all items, and also update their terminal application to add the appropriate fee to transactions. Integrity’s program makes this easy!
Q: Is this program legal?
A: Yes, cash discounting is legal in all 50 states. The Dodd-Frank act prohibits payment card networks “from inhibiting the ability of anyone to provide a discount for payment by cash, checks, debit cards, or credit cards.”*
Q: I’ve never heard of this practice before, is it new?
A: No, businesses have been offering discounts for those who pay with cash for years. In the United States, a lower posted price for cash is very common at gas and service stations across the country.
Q: Is this like a surcharge?
A: No, offering a discount to customers who choose to pay with cash is a completely different situation than surcharging when it comes to the card brands’ regulations. While surcharging is allowed under certain parameters laid out by the card associations, business owners are able to price their products and offer discounts on those products at will. Cash discounting is the business owner exercising that freedom. Surcharging is adding a charge only for customers who use a credit card, and is not currently allowed in ten states.
Q: Will this program completely eliminate my monthly processing bill?
A: Almost. Some merchants will still see some small fees on their bills due to the variations in Interchange prices, but most will see a drastic (95-100%) reduction in their processing bill. Integrity will set up your bill on a daily discount structure, meaning we will take your fees out every day instead of a lump sum at the end of the month. Your monthly statement will show a near-zero cost of processing with the money for the goods and services you sold showing up in your deposit. You will also have a small monthly subscription fee to cover your participation in the program.
Q: How do I decide between a flat, per transaction fee and a percentage?
A: Integrity will set that up for you based on your average ticket size. For those businesses with an average ticket below $15, we recommend a flat dollar amount, per transaction fee. For those with a larger than $15 average ticket, 3.99% works best. This process ensures that as much of your processing costs as possible are covered.
Q: Will my customers be upset with this fee and go elsewhere? Won’t I lose business?
A: Not according to other business owners’ experiences. As cash use declines, the hassle of going to an ATM and paying those fees (sometimes north of 5%) is not worth paying a little extra to use a card. 4% (or a small flat fee) on an individual transaction has a small impact to the consumer, but a very significant impact on your cost of doing business. If you explain the cash discount program is a way for you to keep providing quality goods and services without increasing all of your prices, consumers have shown they are willing to keep shopping with you.
*Source: https://www.ftc.gov/tips-advice/business-center/guidance/new-rules-electronic-payments-lower-costs-retailers accessed September 2017