The Cash Discount Program is a benefit offered by merchant service providers to small business owners. It’s a program that allows you to reduce the cost of processing credit cards.
How does it work?
It works by giving you a cash discount on every transaction up to a certain amount. For example, let’s say your particular provider offers a 3% cash discount. If your transaction totals $100, you receive $97 in cash and $3 goes to the credit card company for processing costs.
How do I get Cash Discount Program?
The Cash Discount Program is typically an option that needs to be turned on at the beginning of each month by calling your merchant service provider. When prompted, you will choose a Cash Discount amount and be charged for this monthly service.
What if I don’t get the monthly statement?
Typically your merchant service provider will automatically enroll you in this program. You’ll need to ask what day of the month it starts so you don’t miss out on its benefits.
How do I know it’s working?
When you receive your monthly statement, you will see that the 3% cash discount has been deducted from all of your transactions. You can also go online to view which transactions were discounted and which ones were not.
Can I get a Cash Discount on everything?
In order to get a cash discount on everything, you’ll need to turn this program on for all of your credit card transactions. Although not recommended for security reasons, you can also select which cards NOT to give a cash discount on.
What if I don’t want the 3% Cash Discount?
If your merchant account provider offers a different percentage than 3%, simply choose the percentage that you want. You can also take advantage of a cash discount on certain types of transactions if your provider gives this option.
What other benefits come with Cash Discount?
Many providers will give you a higher credit card processing rate for the months that you receive the 3% cash discount. They do this to return the money that they lost during the discount period.
What about my regular fees?
Your overall credit card processing costs will not change; you will still be assessed monthly for equipment, monthly statement fees and other administrative charges.
Why should I get Cash Discount?
The Cash Discount Program is a great benefit to take advantage of if you receive a high volume of credit card sales. If you offer your customers the convenience of paying by credit, then it’s in your best interest to get this service turned on as soon as possible.
Who is eligible for Cash Discount Program?
If you own or run a business that processes a large number of credit card sales, you’re likely to be eligible for this program. Note that not all credit card processors will offer the Cash Discount Program. It’s recommended that you talk with a professional merchant service provider before signing up with any company, just to make sure they have what your business needs.