Cash Discount Program

An Introduction to the Cash Discount Program

Credit card processing comes with hefty fees and today; it has become costly for merchants. That is a challenge for businesses with smaller budgets. Swipe fees, or interchange fees, might become a financial burden on your business if you have decided to accept credit and debit cards. That is the main reason most business people are going for cash discount credit card processing programs.

You might be the owner of a small or a big business, but that is not important. The cash discount program comes with numerous benefits. Unfortunately, most business owners do not know what this program is or what it is involved. Card Payment Systems now offers a cash discount program as an option for your merchant account.

What is a Cash Discount Program?

Cash discount programs enable merchants to offset the credit card processing fees that they incur, so they will see a significant reduction in their processing bill each month.

A cash discount program relates to the methods merchants are applying in their businesses to pass the costs of accepting credit and debit cards to their customers or cardholders. The merchants raise their prices through simple conspicuous signage in the business location and offer discounts to the customers who make cash purchases. An example of Cash Discount Program is when you see two prices at a gas station.

How it works

A quick example: If you charge 4%, processing fees on all items, the formula will indicate that the services or products you should sell at $100 will retail at $104 unless your customer uses cash. In that case, the customers making cash purchases will be discounted and will only pay the original $100. The totals are reflected on the customer’s receipt.

What are The Benefits of Cash Discount Credit Card Processing?

Reduced Fees

The main benefit relates to eliminating or reducing fees associated with credit cards accepted.

Easier to Implement

Apart from being more accessible to achieve, the program is also easier to explain to customers. Explaining that every item in the store is priced with built-in fees is usually easy. The merchants can also deduct the fee easily if someone prefers cash payment.

Encourages Cash Payment

Even though most individuals prefer card payments, cash discounts incentivise them to use cash instead of debit or credit cards for all their purchases. In other words, the time between the sale and the access to funds is minimal. Such transactions do not involve wait time or processing time for the money to get on the merchant’s hand. Moreover, merchants can eliminate fraud exposure.

Chargeback Reduction

After reducing the number of customers using credit cards in your store, chargebacks will also diminish. If chargebacks have been a massive problem for your store, the decrease might help you minimize the card fees you pay because you will be at a lower risk.

Complete processing fees reduced is essential to most merchants. Merchant level salespeople benefit from the programs due to the above average margins associated with them.


Cash discount implementation in your business will reduce your credit card fees. However, it will be more successful if you follow every rule. By observing all rules, you will be able to avoid penalties and issues related to cash payments. Be ready to evaluate your success programs.

Will a cash discount reduce the monthly processing bills? Yes!

Some merchants see some smaller fees on their monthly bills. That is because of the variations of interchange prices. Also, Cash Discount program is not available for Pin Debit. Fortunately, most business owners witness 95-100 percent decrease in their monthly bills. After adopting the program, your monthly statements will show near-zero processing costs for services and goods you sell showing up in the deposit.

With the Cash Discount Program from Card Payment Systems, you will reduce your credit card processing fees.