What is Cash Discount?
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.
Dejavoo z9 (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 cash discount 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.
Poynt 5 Terminal
The Poynt Smart Terminal is built to give businesses the tools to thrive in it. It’s more than just a sleek and secure terminal that accepts all forms of existing and emerging payments. It’s a platform that provides access to data and insights that will give your business a super charge.
Poynt takes customer data and privacy seriously, with 24/7 fraud and tamper detection solutions, end-to-end encryption technologies, and full PCI compliance.
The Poynt Smart Terminal seamlessly integrates into any kind of POS. Our Android based app marketplace provides easy access to customized solutions so merchants can manage their businesses the way they want.
The Poynt Smart Terminal is built to process all payment methods, powered by an operating system that stays up-to-date in real-time, and a SDK that evolves as business does.
Real-time business insights
The Poynt HQ app gives merchants access to transactions, trends, insights, and customer information on both smartphone and computer. They can pinpoint loyal customers, optimize inventory, and easily search, manage, and export sales data.
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).
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.
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.)
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.
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.
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!!