What is a Cash Discount?
A cash discount is when the merchant provides a discount when the consumer pays with cash. A non-cash price adjustment is passed through to the customer on all card transactions.
Cash discount programs have been available for years to higher education, municipals, gas stations and utility providers, but only recently have independent business owners began to use the same programs.
This program enables merchants to charge a customer service fee to their customers and thereby eliminate their processing fees. This is not a surcharge program, nor convenience fee.
Here is how it works: The merchant will post a sign in their store notifying customers that there is a 4% customer service fee applied to all store sales.
However, if the customer pays by cash, they will receive a 4% cash discount which will eliminate the 4% service fee. For the sake of clarity, if the customer makes a purchase for $100 and they pay by cash, then the total cost will be $100. However, if they pay by any other form of payment, such as the credit card, then the total cost will be $104. This is done automatically and there is absolutely no calculation required on the merchants part.
When we created VizyPay, our goal was to create a company that is fully transparent and without any hidden agenda. Of course, we want to make a living but won’t allow the power and authority we have to price our clients outweigh doing it the right way and still being able to make a profit. Creating a payments world that competes within margins that are fair to all business owners not just some.
As we begin this journey, we know we are on the right track of making a big difference in the payments world. From years of watching sales reps and companies take advantage of small business owners, we know there must be a change. It may be against the industry norm the way we are doing it, but we truly don’t care. There needs to be a disruption, or the ways of our business will continue to eat away the much-earned profits from small business owners.
The enormous amount of money that small businesses must pay towards interchange and dues and assessments is bad enough. Not to mention the outrageous monthly, and annual fees companies charge. Oh, but wait, there is more! The high mark ups along with bait and switch tactics that our industry is known for, but nobody does anything about.
Hence the reason we cap our sales partners on what they can charge, not only on equipment but on pricing the merchant account itself. Forcing surrounding competitors to compete within our bubble not the uncapped current bubbles that are currently out there.
Change is coming…. “Simple Pricing. Simple Decisions.”
You as the business owner should know this!
In the ever changing payments industry (especially for small to mid sized businesses), the need for full disclosure and transparency is a must. The lack there of within the payments business is hurting small businesses across America.
We will always do our best to show you the true colors of the payments world, while always providing you with fullest amount of transparency possible. Your success is truly ours. Check this video out to better help you understand how things really work, and how we can assist. Thanks!