Cash Discount Programs
Stop Paying Processing Fees
With our cash discount program, you can pass the cost of acceptance back to the consumer through a dual price program or a true discount for cash sales. Our cash discount services allow business owners to continue to accept all major credit cards, but without the loss of money in fees.
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Why Small Businesses Should Offer Cash Discounts
Small businesses operate on thin margins, typically without the large reserves of an enterprise-level company. Every dollar matters a great deal to the success of the business. Cash discounts in Destin can be an excellent incentive to increase income flow for small businesses, leading to greater success. It’s also an excellent way to set your business apart from the competitors and attract more customers!
Increasing the Volume of Sales
Just using the word ‘discount’ alone can be very attractive to potential customers! Everyone loves a deal, and people are more likely to buy when your company offers discounts. That means that your business will see more sales.
So, even though you offer a discount on individual invoices and payments, the volume of purchases should increase. That means that, despite the discount, your business is making more money overall.
People who love sales and discounts will remember that your business is ideal for bargain hunters, so this also works to build customer loyalty.
Cash on Hand
Small businesses in Destin need cash on hand to give customers change, deal with emergency petty cash purposes, and be otherwise prepared for anything that comes up during the day. When you implement a Destin cash discount program, your business has more cash available more frequently. While merchant services for small businesses know that companies need funds and generally work quickly, the security of cash can be very helpful.
Consistent Profit Margins
It is easier to budget and plan when you can predict your margins. Cash transactions will not involve a fee, while merchant service providers often require different fees for different cards. With a successful cash discount program in place, your margins are more consistent.
Reducing Merchant Processing Services Fees
Even with an excellent merchant service provider, merchant processing services cost money. For a small business, those fees can add up. With cash discounts in Destin, small businesses can eliminate processing fees by simply accepting cash.
Fewer Card Chargebacks
Credit card chargebacks are a reality for small businesses using card processing services. If a customer believes something is wrong with their bank statement or receipt, they can issue a chargeback. That costs money, and time for your business, as you navigate how to settle the problem.
While cash discounts aren’t a guarantee of customer satisfaction, it’s much easier to track and issue a return or other settlement without the involvement of a customer’s bank, credit card company, and other entities involved in a chargeback.
Are There Downsides?
Cash has a few potential disadvantages, including the risk of theft. There will also always be people who simply do not carry cash. However, the downsides of encouraging paper money are easily managed with good safety practices and ensuring that you still offer cashless payment methods. Cash discounts in Destin provide a balance between being cash-only, which is not ideal, and paying more fees than your business can afford.
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What is a Cash Discount?
There are a few ways customers can pay for their invoices or pay for products and services at a register. Credit and debit cards are very common, with fewer people carrying cash. Cashless is often positioned as the way of the future, but for small businesses, that can create a few problems.
All it takes is to let customers know that any invoices or payments made with cash come with a discount. The discount could be a fixed dollar amount or a percentage of the entire bill. If you are offering a fixed dollar amount, be sure to set a reasonable minimum purchase amount so you do not lose more money than you should on a transaction.
Why not add credit card processing fees to the transaction and avoid cash discounts altogether? This is called surcharging and is illegal in some states. Where states do allow surcharging, your company will need to tell customers that you are charging them the fee. As you can expect, many customers are unhappy about this and are less likely to pay more than the list price for an item.
Offering a cash discount in Destin ensures that your merchant processing service fees — a required aspect of doing business for most companies — are manageable. Credit card processing costs are built into each item and paying with cash simply triggers money off the top for the customer.
Surcharging and cash discounts are two sides of the same coin for small businesses trying to be as profitable as possible. Cash discounts in Destin have fewer regulatory restrictions and better optics for customers while attaining the same goal of reducing fees and improving profits.
We are happy to work with you to help you understand your options for merchant processing services and fees and how a Destin cash discount can help your business thrive. Contact us today for more information.
