Credit card processing has become increasingly expensive for merchants, especially small businesses who have tighter budgets and may not bring in as much revenue as their larger competitors. By accepting credit cards, businesses face the financial burden of interchange fees, otherwise recognized as swipe fees. On average, swipe fees range from 1-4% and over time, can significantly turn profits into a loss for smaller businesses.
Cash Discount Processing - is a unique payments approach that is fully integrated into SoftTouch POS. No processing fees bill at the end of the month. Fees are taken out daily, so the money you collect in fees never hits your bank. You keep the full $ amount of items sold + sales tax. We set a flat processing rate of 3.5%. This covers and includes all monthly fixed fees, statement fees, batch fees, or any other charges that you would normally be billed by the processor. SoftTouch POS will print a detailed customer receipt with a total of goods and services purchased with the flat rate included, and a lower cash discounted total below that does not include the flat rate processing fee if the patron pays cash. So at the end of the month you have continued to take credit card payments but you pay no fees!
Our Cash Discount POS solution also prepares comprehensive daily, monthly, quarterly, and annual reporting. Reporting that takes into account for taxes and tips in conjunction with non Cash Adj. fees on Credit Card transactions, giving you a proper legal accounting solution. Other basic auto surcharge type solutions create unnecessary and time consuming manual accounting adjustments backing out the surcharges from tips and taxes.
Unlike surcharge programs, cash discount programs are seen in a better light, and fare better with the end-consumers. There has been a misconception that a cash discount program would prohibit sales if a customer does not carry cash.
To implement a truly successful cash discount program, a merchant must
overcome the confusion and questions consumers and employees have
surrounding a cash discount program.
At a minimum, a merchant is required to provide at least one point of
notification prior to sale that there is a service fee applied to all sales and a discount given if a cash payment is made. Multiple points of notification are recommended – such as at the door, register of the store and throughout the establishment if needed.
Additionally, reference to the program must be made on the bottom of the check and/or receipt.