Cash discount programs are nothing new. Many people don’t realize that they’ve been used in the U.S. for many years. You might have even used one yourself if you have a car. Gas stations have been offering cash versus credit price for over a decade, with the cash price often being several cents less than the credit price. Those who pay with cash enjoy getting a discount, while those who pay with credit card enjoy being able to pay-at-the-pump and go.
Cash Or Credit?
Business who offer to take credit card payments must pay a fee to the credit card companies for each transaction. With more people using plastic than ever before, these fees can add up throughout the course of a day. Businesses who use discount payment processing have found a way to overcome these fees. By setting prices to cover the credit card transaction fee, you save your business money by passing on the fee to the customer.
By offering a discount payment processing program, customers who pay with cash pay a lower price that does not include that fee. This encourages people to pay with cash to receive a lower price, but it still allows credit card paying customers the ability to utilize the convenience of credit.
More Places Where Cash Discounts Can Be Found
Gas stations are not the only places that offer discount payment processing. Take a look at where fees and discounts can be found:
• Cell phone carriers such as T-Mobile and Verizon charge a fee when you pay by credit card by phone.
• State, local, and national government offices like the DMV, post offices, and the courts charge an average of 2 to 6 percent when paying with plastic.
• Colleges and Universities charge on average 2.5 – 3 percent when using a credit card to make payments online and by phone.
• Utilities such as energy, satellite, and cable companies charge an average of $6.50 for non-cash payments.
• Healthcare companies ranging from dentists to hospitals are beginning to utilize discount payment processing to assist those who pay with cash.
• Non-profit organizations can put less money into transaction fees and more money toward the cause when they offer cash discounts.
There are many places where cash discounts can be found. Will you become one of them?