Accepting Credit Card Payments Can Eat Away At Profits

Consumers expect to be able to pay for goods and services however they like today. If a business is not capable of meeting their demands, the customers will simply find another establishment that can. A lot of folks don’t even carry bills or coins anymore. Rather, they utilize credit/debit cards and even their smartphones for making payments. Therefore, businesses must have the right equipment to get the job done. There are several high-quality point-of-sale terminals on the market to help them accomplish the feat such as…

• Dejavoo Terminal
• Foundry Point Of Sale Terminal
• Poynt Terminal

Of course, there are other devices out there, but these three are simple to use and are perfect for setting up a cash discount program. Why? Well, for one, these units accept all types of payments. Additionally, they are EBT, PCI, and EMV compliant, so no problems are likely to arise. Don’t just take a stranger’s word for how good they are though. Instead, do some research, ask other merchants about their experiences, and find the right one that accommodates your company’s needs.

What Is A Cash Discount Program?

Don’t fret if all this terminology sounds like a foreign language as everything is going to be explained thoroughly here. A cash discount program is when a merchant offers a customer a lower price on something for paying cash. Why would they do such a thing? The simple answer is because it saves the retailer money. When a client purchases an item with a credit or debit card, the seller has to pay a transaction fee to the bank.

The amount varies, but it tends to run around 5-percent. Regardless of whether the product is a large or small buy, the dealer has to pay the percentage. As anyone can see, these costs can add up in a hurry. The company’s profits dwindle and go right down the drain. If the organization winds up spending too much funding on these fees, the action can even cost people their jobs. However, the owner can implement a cash discount program to combat these effects.

It cuts out the middle man so to speak. Instead of having to raise costs, the institution can sell items for a particular price to those paying with credit cards while offering it at a discounted rate to those purchasing via physical bills and coins. The process is entirely legal providing that it is done right. Merchants must post signs at the entrances as well as the point of sale terminal. Also, any fees or discounts need to be printed on the receipts. Do some more legwork on your own, and you will quickly come to realize that a cash discount program will benefit your company.