How Cash Discounting Works - Cash Discount Agent Program Details
If you are a merchant services agent, then you know that there are a variety of solutions that you can offer your merchants that provide benefits to both the merchant and yourself as an merchant service agent. One great example of one of these solutions is a cash discount program. While cash discounts have been around for a while, a true merchant cash discount program (dual pricing merchant program)is an innovative program that is designed to help merchants save money and provide a price break for customers that choose to use this form of payment that comes with higher margins. If you want to build a lasting relationship with your merchant and establish a lifetime of residual income from your merchant accounts, then you should be offering your merchants' the cash discount (dual price) programs and explaining the benefits in-depth to help them navigate this topic.
What is a cash discount program and how does it benefit the merchant?
If you are trying to sell a cash discount program to your merchants, one of the first questions that they are going to have for you is what a cash discount program is and how it can be used to benefit the merchant. As it turns out, a cash discount program for merchants has many benefits to the merchant and to the consumer that is utilizing the cash discount program. However, the first step is understanding what a cash discount program is and how it works.
You are probably familiar with a cash discount at a store or shop. It’s something that store owners offer to customers that pay with cash. They usually provide a discount to these customers since the store will be able to bypassing credit card processing cost. These savings are, in this way, passed on to the customer. Though the standard cash discount has been around for a while, a robust service to take full advantage of this system has yet to be delivered--until now.
Our cash discount program is one of our most innovative offerings and plays to a simple, universal, age-old truth: cash is king. We understand that some people will always carry cash, and we provide merchants with a way to capitalize on this fact and reap the benefits for their business. Our cash discount program is a system that automatically provides a lower price for those that pay with cash, while tacking on a processing surcharge for those that choose to pay with credit cards.
With this system, merchants are able to save money by accepting cash and increasing their margins. Customers are able to pay a lower rate for their goods and services when using cash, providing them with an opportunity to save money. Customers that decide to stick with their credit cards are usually not opposed to paying the transaction fee because it provides them convenience. When customers do decide to pay the transaction fee to use credit, it means that the merchant is basically covering the processing fee for the transaction and making it easier to achieve better margins on their goods and services.
Video: How Dual Pricing Merchant Services Works - How Merchant Cash Discounting Works
In addition to saving money on processing plastic and increasing margin in their business, most merchants also enjoy another incentive when using a cash discount program. Our cash discount program provides merchants with a free POS system to use to help facilitate transactions and make it easier to be efficient when accepting payments of all kinds.
Overall, a merchant cash discount program is a system that benefits all parties involved and provides a wide range of incentives for merchants to implement the program.