Cash Discount Processing

What is it?

The Cash Discount Program is an exciting way of  reducing credit card processing costs to businesses down to almost zero! This  adds profit DIRECTLY to the bottom line of the business!

Think about it… if the  processing costs are $500.00 per month, how much in SALES would the business  have to make to add $500.00 to the bottom line?

Businesses and government agencies have been charging a “surcharge” for many  years, not wanting to pay the rising charges associated to credit card processing  fees. With the Cash Discount program, we turn that around  and suggest that, instead of charging a surcharge, you offer your customers a “Cash Discount”. It is completely legal and acceptable to offer a discount to  customers for paying cash or charging them the “regular price” at the credit card  terminal.

Here’s how it works: The business owner simply posts a sign(s) supplied by the sales agent, at the registers and on the door explaining that the posted prices are the “Cash Discounted Prices” and that, should the customer elect to pay by credit or debit card, they will be charged the REGULAR price for the products or services in the business and the regular price will be calculated and added onto the receipt by the credit card terminal automatically at the time of check out.

Axial Consulting continues to grow ever day thanks to the confidence our clients have in us. We cover many industries such as financial, business services, retail, restaurant and industrial.

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how can we help you?

Contact us at our Axial Consulting office or submit a business inquiry online.

Axial Consulting really helped us achieve our financial goals. They reduced our processing fees by thousands of dollars per year allowing us to reinvest those dollars.

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Amanda
Sales & Marketing

The Terminals

Dejavoo Z8

Dejavoo Z8

Dejavoo z9 (Wireless)

Dejavoo Z9 (Wireless)

PAX S80

PAX S80 Terminal

PAX S90 (Wireless)

Pax S90 (Wireless)

NOTE: ALL wireless terminals will have a $20 per month additional connectivity  Fee associated with the wireless network.

This terminal DEFAULT setting is to charge every customer the “regular” price.

OPTION: If the merchant would like the terminal to ask the question “Do you want to charge the regular price fee? Y or N” we can turn that on. At that point
the clerk will have the option to charge the customer or charge the business the regular price fee.

HOWEVER: If the clerk answers NO, the business will be charged  the fee and it will come out of the business’s next deposit instead of the customer’s card. By answering NO, the business is agreeing to pay the processing fee instead of the customer paying the regular price.

The positive thing about leaving this option OFF is that no one will have the  option to waive the regular price on a whim, or accidentally hit NO.

NOTE: Leaving this option ON will allow anyone to make the decision on every transaction to charge or not. Also, the batch reports will not match the deposits because the fees will be taken out of the deposits every day.

OPTION TWO: The merchant can have the question ON “Would you like to charge  the regular price fee? Y or N” and then STOP the transaction if they answer NO.  This will give the option but force the customer to pay with another form of  payment (cash or check).

REMINDER: The DEFAULT is for us to leave these  questions OFF so if you Want them on, please call our tech support dept.

The Sign

Offering a discount to encourage customers to pay cash/check is fully legal in all 50 states. We highly recommend posting a sign on the window and at each cash register explaining the “Cash Discount Program”. The sales representative will provide a sign for the door and one standing counter sign for each credit card terminal. Posting these signs will do three things for the business:

1.) Inform the customer of the program.
2.) Encourage them to pay cash.
3.) Keep the business in compliance all state laws and the regulations of the credit card brands. (Visa/MC/Discover/AMEX).

Cash Discount Signage
Cash Receipt

Note: In the sample receipt, if this were the only credit card charge for the day, the daily batch report will say $18.70, because this is the total amount charged from the customer’s credit card, but the bank deposit will be $18.00 because the $.70 will be automatically debited from the deposit.

The Reciept

Example: If the customer’s total bill is $100.00, the clerk inputs $100.00 on the credit card terminal. The terminal will automatically calculate the REGULAR PRICE by adding the percentage charged on top of the $100.00. (See sample receipt below.)

Receipt

Note: In the sample receipt, if this were the only credit card charge for the day, the daily batch report will say $103. 95, because this is the total amount charged from the customer’s credit card, but the bank deposit will be $100.00 because the $3.95 will be automatically debited from the deposit.

CC Receipt

Note: If the customer’s total bill is $18.00, the clerk inputs $18.00 on the credit card terminal. The terminal will automatically calculate the REGULAR PRICE by adding the percentage charged on top of the $18.00.

The Statement

The Statement

Here’s a sample of a REAL processing statement reflecting the cash discount program:

This merchant had a total of $23,675.28 in sales for the month. The daily charges were $829.21 and were ALREADY PAID to the processor every day.

FROM THE STATEMENT
Total Amount Submitted $23,675 (this includes the “regular price” increases)
Total Fees Charged Daily $829.21 (this is the “regular price” increase)
Monthly Service Charge -$45.00 (program cost)
Total Paid Daily -$829.21 (this is the amount that was already paid to the processor)
Total Amount Funded $22,801.07 (this is the total funded after the $45 was paid)

So your TOTAL AMOUNT DUE at the end of the month is $45.00!! That is a savings of $784.21!!

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