Cash Discounts

Cash discounts can save your store money by: passing the processing fees onto the customer, and increasing cash sales.

Cash Discount v. Card Surcharging

Card surcharging is becoming more commonplace. It is very simple to implement, the point of sale will add a fee (generally 2.99%) to all card payments.

The problem is its illegal to surcharge debit cards in the United States, and there is no mechanism for a point of sale to determine if a card is a credit card or debit card.

Cash discounts work by adding the 2.99% fee to products before the checkout process. Therefore each product will need to have the pricing increased by 2.99%, and all the shelves will need to be re-labeled. This can stop many merchants from choosing a cash discount program. LiquorTech can automatically increase the pricing of all the products in your store if you choose to implement the cash discount program.

Higher Credit Card Fees

Credit card networks and banks each add fees to a card transaction. These are generally broken into two groups: interchange, and assessment.

Assessment fees are collected by the credit card networks: Visa, Mastercard, Discover, American Express, etc.

Interchange fee are collected by the banks. When a credit card has perks, the merchant pays for those. The credit cards that have better perks for the customer will also cost more for the merchant.

Some credit card networks like Discover do not work with banks to offer branded cards. These card networks will then collect the interchange and assessment fee. Which can look like these cards cost more than a co-branded Visa card.

Increasing Cash Sales

Cash sales will reduce the amount of chargebacks. Many merchants will have a similar experience where a customer bought an item with a credit card, then disputed the transaction, and won. Leaving you out the product, and the money.

Funding for credit card transaction can take longer. Banks are closed on weekends and Federal holidays, so getting the money into your account can take up to a week in certain circumstances.

Higher Store Profitability

When you look at your credit card fees, how much are you paying? Wouldn't it be nice to have that number go to zero? Most merchants we work with are spending thousands of dollars a month in credit card fees.