Get money back
Cash Discount
What is a Cash Discount Program?
Establishing a cash discount program allows you to add a service charge to all sales, often enough to cover payment processing fees, and remove it when a customer pays with cash.
Managing a cash discount program with a GBT POS system is a win-win. You get the advantage of a POS system with built-in cash discount program management, compliant with card brand regulations and Texas laws, to enable you to recoup your payment processing fees — and your cash customers get a discount each time they shop.
Cash discount programs are ideal for grocery and convenience stores, which may have a higher volume of low-value payment card transactions. The program allows you to give your customers the convenience of using credit cards by paying a low service charge, but it doesn’t increase your costs of doing business.
Requirements for a Legal Cash Discount Program
The GBT team will provide the information you need to establish a compliant cash discount program.
- Signage that clearly shows both the credit price and the discounted price for using cash
- Listing cash discounts on receipts
- Informing every customer verbally prior to transactions that the cash discount is available
Don’t confuse a cash discount program with credit card surcharging, which is prohibited in Texas. Cash discounts are not credit card surcharges. You aren’t adding a charge to transactions when customers pay with a card — you are adding a service charge to all transactions and removing it if a customer pays with cash.
Cash discount programs that meet regulatory requirements are legal in all 50 states and permit service charges for debit card purchases as well as those that customers make with credit cards.
GBT POS systems are configured to allow you to automatically apply service charges, print receipts that show the charge or the discount for cash payments, and ensure you meet other requirements of a compliant cash discount program.
Do the Math
Cash discount programs enable you to, in effect, pass payment processing fees on to your customers.
Merchants who accept credit and debit cards pay payment processing fees. The effective rate (a total of all of the fees you pay to process payment cards), can vary, but it’s often about 3.5 percent of the amount of a transaction.
If your store processes $1,200 in payment card transactions each month, that means you’re paying about $42 in payment processing fees.
You could recoup those costs with by establishing a cash discount program — and GBT point of sale (POS) systems, which start at $49 per month, have built-in cash discount program management that enable merchants to offer cash discounts that comply with industry regulations and Texas laws.
GBT POS systems with cash discount program management can literally pay for themselves — and provide your business with additional features that can save time, improve customer experiences, and help you grow your business.
Contact us to learn more.
Free Estimation
Request a quote
Contact the GBT POS team to see how affordable a POS system with all the features you need to grow your business can be.