During this crisis, business owners are looking at all cost cutting options in order to keep their doors open. We have talked to our peers in the industry and have learned that many of their customers are turning to different cash discounting programs to reduce or eliminate the cost of accepting credit cards.
There are definitely right and wrong ways to go about this, and you will want to partner with someone that really understands how these programs work.
Here is more information from one of our cash discounting partners, Clearent Payment Solutions:
- True Cash Discounting – A true cash discount is when a business offers a discount to customers who pay by cash, check or store-branded gift card, instead of with a credit or debit card.
- Non-Cash Adjustment – Implementing a non-cash adjustment is another way business owners can offer a discount off of their listed, stated and advertised prices. Customers who pay with credit and debit cards do not receive the discount and will notice a non-cash adjustment on their receipt.
- Surcharging – Surcharging is when a business owner applies a fee to a customer who pays by credit. It’s important to note that surcharging is prohibited in six states (Colorado, Connecticut, Kansas, Maine, Massachusetts and Oklahoma) and requires business owners to follow a few additional steps so they are in compliance with the card brands.
If you are interested in learning more about ways to using cash discount programs in your business, please call us at 907-243-2683.
Or schedule an appointment here: