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The Cash Discount Program

Every single one of us has experienced the Cash Discount Program.

If you’ve bought a slice of pizza, eaten at a restaurant, taken your car to a mechanic, etc., then you’ve seen it.

What IS Cash Discount?

Simply put, it’s where a customer pays a small percentage to pay with their plastic credit or debit card.

Why would a merchant do something like that to their customers?

It’s simple really. Most folks have no idea what it costs a merchant to accept plastic payments today. Can you imagine paying 70 to 100 THOUSAND DOLLARS A YEAR, JUST to accept plastic.

It’s not a crazy number either. We’ve got numerous customers that we’ve SAVED that and more, each and every year.

Let’s run some math. A Convenience Store in a high traffic environment, with fuel pumps, is producing $275,000.00 per month in credit card transactions. At the National Average of 2.9%, that means the merchant is paying $7,975.00 each and every month, to take your plastic. In a year, that’s $95,700.00. It’s a LOT of money.

With Cash Discounting, the merchant now offers you the ability to pay with your plastic, but when you do, you’re charged roughly 3% to do so.

What’s in it for the merchant? NOW, that very same C-Store is paying a flat rate of $10.00 per month, INSTEAD of $7,975.00. That’s a monthly savings of $7,965.00 and annualizes at a savings of $95,580.00.

That, my friends, is one TON of money.

Multiply that by millions of merchants out there, and you begin to get an idea of just how HUGE this Credit Card thing is.

We have merchants, right here in Plattsburgh, saving that kind of money, EVERY, SINGLE, MONTH.


And that’s PRECISELY why they’re doing cash discount.

What’s the discount part? Pay in cash, and you avoid the 3%. It drives the merchants cash business while saving them a crap load of money taking plastic.

But what if customers revolt and go somewhere else?

Statistics show us that it doesn’t happen. You “MIGHT” have one or two that moan and groan, but the great bulk realize that it’s just got to be. No one stays in business by giving away the store.

What I tell my merchants to tell their customers is simple: “We had a choice to wholesale raise our prices, or find cheaper, less invasive ways to cut costs. With this program you pay 3% instead of a 10-20% across the board price hike. It really DOES save you money in the long run.

Imagine, a TEN dollar bill each month, or a nearly $8,000 bill? Which would YOU prefer, as a merchant?

Can you really process $275,000.00 a month for $10.00? Yes, you can and we do it every single day of the week, and we make a boatload of money doing it so why wouldn’t we?

Is this LEGAL?

Yup! In 2012, the United States Congress, realizing that they simply couldn’t regulate or police millions of merchants, stripped those merchants of the ability to upcharge a customer to accept their plastic.

What they did next, in the 2012 Dodd-Frank Act, was to place the responsivity on the backs of credit card processors (known as ISO’s) to administer a Cash Discount Program for merchants.

Why us? Well, it a whole lot easier to police 1-200 ISO’s in the country than it is millions of merchants.

Simple stuff.

Cash Discount is legal in all 50 States, as long as you follow the rules.

1. It has to be done by the processor
2. The merchant can’t make a profit from it
3. Signs must be appropriately placed (We provide the signage)

That’s it, that’s all.

How can you sign your business up for Cash Discount? It’s simple really, call us today TOLL FREE at 1-833-835-8226 or visit our website or follow this link to apply:

You can be in any business, in any state, in any town in America, and WE can help YOU SAVE CASH.

Give us a whirl!

Till next time.

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