Implementing a Successful Cash Discount Program
In order to implement a successful cash discount program, the merchant educate their employees and customers on many of the confusing aspects of the cash discount program.
The card brands require the merchant to provide at least one point of program notification prior to the sale that states that a service fee is applied to all sales and a discount is given for a cash payment. (We recommend several points of notification) Typical notification points include doors, registers, end caps and other prominent, highly visible areas.
Every employee should be educated on how to verbally reference the program and should be announced at every transaction. Correct and consistent language is imperative for a successful implementation. Phrasing such as “Did you know you can save $X.00 by paying with a cash?” or “ We offer X% discount on your purchase by paying in cash, would you like to take advantage?” can help encourage new buying behaviors. Language like this clearly conveys a discount for paying in cash. It is also recommended that merchant has some form of reference information handy to pass along to the customer if they have any questions.
In working with countless business owners, there is one consistent fear about going to a cash discounting program. The fear is that by offering a cash discount program, they will anger and ultimately lose customers.
Beyond the psychological advantage of using the jargon “Cash Discount vs. Surcharge”, the statistical data does not show any appreciable difference in sales loss due to cash discounting. In fact, our data shows that nearly 99% of customers simply disregard the convenience fee.
By sticking to these key points and choosing a reputable service provider, you should be well on your way to implementing a successful cash discount program.
Cash Discounting by SwyftPAY is a compliant and secure Cash Discounting Program. For more information on Cash Discounting, please contact us at 888-256-8917.