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The 4 Key Points Merchants Must Follow With the Cash Discount Program

Congratulations! You’ve joined thousands of merchants across the country who have switched to the cash discount program. The program will save you a significant amount in the next year by reducing your credit card processing costs. But a lot depends on how your business presents the program.


Here are 4 key points you as a merchant should follow to ensure success:

  • First, make sure your cash discount signs are visible at the door and register of your business. Your customers MUST be informed of the service fee prior to making a purchase. This ensures that you are 100% compliant with all federal and state laws.

  • Your interaction with the customer at the point of sale is very important. You want to make sure you are properly stating how the discount works. For example, if your customer service fee is 4%, don’t say “It costs 4% to use your credit card.” Instead, say “Would you like to save money by paying in cash today?” It makes the customer feel good that you’re giving them an option to save money.

  • With cash discount, you will get three types of customers. The first is the understanding customer. 95% will understand the fee and not question it. The second type is the questioning customer. This customer just needs a good reasoning for the charge. Here are just a few examples of what you could say:

“Credit card fees have become too high. I have to add a non-cash fee so I can afford to accept cards.”

“It’s a blanket cash discount. Everything is 4% higher to cover credit card costs, but you don’t have to pay it if you pay with cash.”

“It’s like an ATM fee, except I’m only charging 4% instead of $3.00.”

The third type is the angry customer. This will be less than 1% of your transactions. We recommend never losing a customer over a service fee. If they really can’t understand the program, just reimburse them from the register. Understand that cash discounts are still new and it’s going to take some customers longer to catch on.

  • Sometimes you may get a customer questioning the legality of a service fee in your state. We provide federal and state specific documentation you can share. If you don’t have this documentation, request it from your merchant services provider.

Cash Discount is transforming the payments industry and you are now on your way to drastically reducing your credit card fees. By following the above steps, you as a merchant can successfully integrate the cash discount program for your business and explain the logistics of the service fee to your customers in a professional manner.


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