A cash discount is a deduction from the amount of a bill offered by the seller to the buyer for prompt payment and thereby avoiding credit card fees. Note that, Cash discounts are typically stated as a percentage of the bill. Which are legal as long as they are clearly stated to the buyer at the time of purchase.
How to offer a Cash Discount on your Business
Cash discounts or Non-Cash Adjustment programs are becoming a popular way for businesses to avoid paying credit card processing fees. Offer a discount to customers who pay with cash and recoup some of the fees you would otherwise have to pay to accept credit cards. These are typically offered to businesses that have high transaction volumes, such as restaurants and retailers. However, any business that accepts credit cards can participate in this program
How does it Work?
This program offers the ability to the restaurant the option to accept Dual Prices. Dual Prices are great for customers that want to save money every time they pay in cash. When the customers pay with credit cards there will be a surcharge(3.89%) for that order. This money will be of great overall saving for the restaurant and customers as it will otherwise be passed to menu price with no option for the customers to save and making prices less competitive for your business
Keep this in Mind
First, you will need to make sure that your point-of-sale system is capable of handling non cash adjustment. Second, you will need to develop a clear policy to state Cash Discount option.
Which Point of Sale can I use with Non-Cash Adjustment Program?
There is a great variety of POS software that nowadays accepts this program. However, you can ask yourself first which other features I need or will need in the future on my Point of Sale solution. You can follow examples in our Restaurant Features Page
This discount programs can be a great way for businesses to save money on credit card processing fees. You can download your own sticker on the form below