Cash discount programs refer to incentive schemes where the merchant lowers the total cost of a transaction if the customer chooses to pay with cash rather than credit card. This methodology is legitimately recognized by all major card brand regulations and is also compliant with federal law.
The basis for cash discount programs is rooted in the fees every merchant must pay to accept credit card transactions. Such fees, often ranging from 2-4% of the total sale, can potentially erode a significant part of their profits. A cash discount program allows them to avoid these fees and ideally pass on the savings to the customers.
Royalty Cash Discount is one such program that supports businesses to implement a cash discount system effectively to minimize credit card processing fees while remaining compliant. The specific value of Royalty Cash Discount lies in its unique ‘Revenue Share Program.’ Businesses have the opportunity to earn monthly royalty checks from any customer they refer who subsequently starts using their service.
The appeal of the Royalty Cash Discount program includes not just the elimination of credit card processing fees, but also an additional stream of income through their royalty checks. Such financial relief can be a significant boost for small businesses facing slim profit margins or struggling financially.
Passing the fee to the customer has grown into an acceptable practice. This is usually implemented by putting up clear notices at the point of sale, informing customers that the listed prices are cash prices, and a small service fee (often ranging from 3-4%) will be applied if they choose to pay via a credit card. Thus, honoring transparency and keeping customers informed.
In conclusion, cash discount programs like Royalty Cash Discount can provide significant benefits for businesses that process a high volume of credit card transactions. These benefits extend not just to the business owners but also to customers who prefer to pay in cash. By effectively implementing such a program, businesses can potentially save thousands of dollars per year in credit card processing fees while enjoying the benefit of revenue share through royalty checks.
