CASH DISCOUNT PROGRAM

By utilizing a cash discount program, your business will be able to eliminate all of your processing fees. Depending on the business type, current rates, etc., a Cash Discount Program can help companies that are most impacted by high processing costs. Just imagine eliminating 2-4% in fees on sales volume. Your business could go from paying hundreds to thousands a month in processing fees to profiting an additional 2-4% by a simple switch to a Cash Discount Program.

There are a couple of rules to follow when implementing a Cash Discount Program, but first and foremost, you do not need to change any of your prices. 

1. Post Signage (We will provide) stating all transactions possess a service fee of 3.99%. Pay with cash and save. Receive a discount by paying with cash. 

2. Use a terminal that is programmed correctly, which will automatically add the service charge and charge as a separate line item.

You know your customers better than we do. We understand nobody wants to pay additional fees; however, we believe more consumers are starting to understand it is expensive for merchants to accept credit cards. Implementing Cash Discount Program with a 3.99% fee on all sales is a small price to pay on products or services you sell. A Cash Discount Program can allow you to stay in business longer and keep your overall costs lower for only a small price.

There are many surveys showing consumers would not think twice about paying an additional fee for the convenience of using their credit card versus carrying cash. Fewer people are carrying cash, and most people love the reward programs associated with their credit card. 

For example, look at consumers paying cash discount fees at the gas station. We guarantee 90% of consumers do not pay with cash for the convenience of their credit card, and they do not even think twice about it. 

A Cash Discount Program is a way for business owners to keep the quality of their products and services competitive. Most consumers would understand, especially if you can keep your current pricing the same and competitive. 

Moreover, again, a 3.99% service fee on an individual transaction will have a minimal impact on the consumer, but for you, the merchant, your savings are significant.

Cash discounting has been around for a long time now. Cash discount programs have been used across the US in gas stations where a cash discount is offered at the pump for over 15 years. There are many government entities, from national, state, and local government bodies, including but limited to the DMV, Secretary of State, Post Offices, Schools, Courts, and the IRS implement a Service Fee.

Yes, a Cash Discount Program is perfectly legal but has to be abiding by specific rules put in place. 100% yes, our credit card cash discount program is legal, utilizing a cash discount at the point of sale is entirely legal in all 50 states. A cash discount can easily be confused with a credit card fee or surcharge, legal in only 40 of the 50 United States.

The Dodd-Frank law prohibits a payment card network such as Visa "from inhibiting anyone's ability to provide a discount for payment by cash, checks, debit cards, or credit cards," said Katz. Mitchell Katz, is a spokesman for the Federal Trade Commission and stated: "Neither surcharging, nor a cash discount is illegal." 

A surcharge program is a type of credit card processing where the merchant charges the consumer an additional fee or surcharge on top of the cost of goods to cover the merchant processing cost. Surcharge programs are currently only legal in 40 states (Surcharging is illegal in Florida, Texas, Oklahoma, New York, Massachusetts, Maine, Kansas, Connecticut, Colorado, and California.). In comparison, cash discount programs are legal in all 50 states.

A Cash Discount Program is almost always better received by the customer than adding a surcharge fee. Not to mention is more accessible to implement than a Surcharge Program from a compliance standpoint.  

A cash discount program and a surcharge program are both credit card processing programs that businesses can use to eliminate merchant services fees each time a customer uses a credit card. A surcharge program adds on an additional fee at checkout to cover the merchant services fees. An actual cash discount program gives the customer a discount for cash payment by avoiding any additional costs, thus, not charging an additional  surcharge fee for using a credit card.

No, the Cash Discount program and Surcharge are not the same at all. However, they look similar; they are entirely different, particularly in Visa and MasterCard's eyes. As mentioned previously, the 2013 ruling against the card networks allowed merchants to implement a surcharge except for (Florida, California, Colorado, Connecticut, Kansas, Maine, Massachusetts, New York, Oklahoma, and Texas, plus the U.S. territory of Puerto Rico). These states argue that a surcharge is not fair to consumers. This has to be the most unfair rule we have seen in the industry, as it is not appropriate for consumers to pay for the cost merchants incur to provide goods and services. At the same time, it is perfectly fine for merchants to pay for the rewards programs associated with the credit cards that consumers use. Every credit card rewards program out there speaking about the benefits and rewards of individual credit cards ultimately increases the cost for a merchant to accept credit cards. The increase in fees by the card-issuing banks or credit card processors – is paid for by you, the merchant!

The Surcharge Program carries with it several stipulations:

Only credit cards may be surcharged – NO debit cards.

Signage must up for at least 30 days before implementing a surcharge alerting customers.

There is a 4% maximum 

Surcharging is only allowed in approved states. 

These limitations for a Cash Discount program are not in place; as you are not implementing an additional fee for accepting credit cards, you provide a discount for those who pay with cash. There is a clear distinction, and in which, Visa, Mastercard, and the courts have agreed upon:

In a Cash Discount program, all prices in your store hold a 4% Fee Charge. The posted prices are essentially, the cash price. Those who pay with cash do not have to pay this fee. 

The Cash Discount Program can be suitable for any business looking to eliminate credit card processing fees. We highly recommend a Cash Discount Program for mature companies if it makes sense. 

No. There are no contracts or cancellation fees for any account that is set up at Payment Launch.

If you wish to discontinue the Cash Discount Program for any reason, we will immediately change the pricing to a wholesale model. You will still save money on your credit card fees by utilizing our wholesale model. 

If a fee is incorrectly applied to a transaction, any additional fee charged to those consumers using a credit card will be labeled as a surcharge, which is forbidden by Visa, Mastercard, and the processing provider without taking concrete steps. (See Previous) Also, the terminal needs to be configured to automatically add the fee with a separate line item on the receipt. Not to mention, the processing fees will have to be billed separately, which is what our cash discount program automatically does. 

The way around this process is to allow us to automate a Cash Discount Program for you, which is entirely different than the Surcharge Program. In the Cash Discount Program, you simply post signage stating that all consumers will now be paying a 3.99% Fee; however, the fee will be waived for those paying with cash. We program your terminal so that this fee is automatically added for those customers using any payment method other than cash (mainly credit cards). While this may seem very similar to the Surcharge Program, it is very different as everyone will pay an increased fee, but those who pay with cash receive a discount. In contrast, with the Surcharge Program, you are explicitly stating that those paying with credit cards will pay more. Most importantly, the Cash Discount Program aligns more with the rules of Visa and Mastercard.

Visa, Mastercard, and the Processor’s rules forbid merchants profiting on a credit card transaction, which could happen if you accidentally charged more with a Surcharge Program than the processor was charging you. Not to mention you have to register to surcharge with your processor, and you cannot surcharge a debit card. By utilizing the Cash Discount Program, we establish proper pricing for you to ensure you stay within all stated guidelines.

A Cash Discount Program is a simple credit card processing program to help you as the merchant eliminate credit card processing fees, passing a fee to your customer, usually 3.5% to 3.99%. The formula for Cash Discount is simple and is an automatic program by the terminal or point of sale: taking the total sale transaction multiplied the service fee. 

At Payment Launch, we will provide you the signage to hang up around your store and at the register. We also will create custom (logo, colors, etc.) signage for free upon request. 

When utilizing a Cash Discount Program properly, your customer's receipt should obtain a line item specifically for the service charge.