ZERO COST
WHAT IS
ZERO COST CREDIT CARD PROCESSING
OR "CASH DISCOUNTING"
So, what is zero-cost credit card processing, or cash discounting? A cash discount program allows businesses to offer credit card acceptance at their business but realize none of the merchant service fees associated with those transactions. A business offers the customer the ability to CHOOSE to pay for the product or service with cash OR credit. If the customer decides to pay with credit, the merchant service fee is included in that transaction. If they choose to pay with cash, they get a discount; hence “Cash Discounting”.
The key is that you advertise a price that factors in the processing fee percentage and then you deduct that amount at the register for customers paying in cash.
Every small savings stacks up–for your business and for your customers–and cash discounting facilitates it.
HOW CASH DISCOUNTING
BENEFITS YOUR BUSINESS
Cash discounting increases cash flow. By avoiding credit card processing fees, you have more capital available that you can use.
An extra percentage represents a massive opportunity to invest more money into your business: new point-of-sale systems, new equipment, much-needed repairs, more staff, and more inventory.
Cash discount programs aren’t exclusive to business-to-customer transactions. A business-to-business cash discount program provides a mutually beneficial financial arrangement between vendors. If a business invoices a client, cash discounting lets the business slash a small percentage of the money owed in exchange for paying the invoice sooner.
WHAT ARE CASH DISCOUNTING APPS
& HOW THEY WORK
Cash discounting helps to draw attention to prospective savings, and cash discounting apps seamlessly process payments. Apps allow you to automate all cash discounts, track transactions, and analyze buying trends. They’re imperative for any cash discounting program.
What Cash Discounting Apps Do During a Transaction
Running on a point-of-sale system, cash discounting apps scan an item for purchase and initiate the transaction. The app offers a choice of payment methods to customers. The merchant has the ability to predetermine the cash discount percentage that is applied to all transactions, and programs that into the app.
Depending on your sales strategy, you can offer a side-by-side comparison of the cost to pay with cash and the cost to pay with a credit card. Price transparency is part of the allure of customers, a building block for trust and customer retention.
When the cash discounting app processes a payment, it generates a physical and/or digital receipt for the customer. It also collects information about that purchase, putting it with all other sales transactions and feeding them into the program’s analytics.
Why the Analytics You Get from Cash Discounting Apps Are a Game-Changer
Just like any sales-focused app, cash discounting apps collect data on what is purchased, when, and by whom. This information is manna from heaven for any business including but not limited to convenience stores, gyms, vape shops, beer warehouses, salons, retail shops and automotive repair businesses.
Why? It helps owners identify customer buying trends, like peak hours and key products that consumers purchase with cash. You can then use this information to develop, or adjust, branding strategies to drive greater cash purchases. The apps also track payments to vendors and provide real-time data about your business’s cash flow.
HOW CASH DISCOUNTING APPS
IMPROVE BUSINESS OPERATIONS
Cash discounting apps support day-to-day operations, enabling critical business functions and supporting marketing efforts. Here’s a quick look at three tools cash discounting apps offer.
PRICE CONTROLS
Merchants can set prices, create labels, and manage inventory through a cash discounting app. It gives them a clear idea of what they have in stock and what money is coming in and out of the business.
LOYALTY PROGRAMS
Merchants can use cash discounting apps to create and support customer loyalty programs. After a transaction, the app will notify customers, either through text or email, what they saved by purchasing an item with cash and offering them rewards for future cash purchases.
BUSINESS TO
BUSINESS INVOICING
Merchants can use cash discounting apps to invoice vendors. The app generates an invoice, sends it via text or email, and then offers an incentive for the vendor to pay with cash by a deadline. The vendor can pay online, and the app updates the merchant’s account.
HOW FFSB2B
CAN GET YOU STARTED
Where should your business get started with a zero-cost cash discount program? Call the experts at FFSB2B! Our team, along with Clover and Valor Tech, both of whom specialize in featuring cash discounting in their point-of-sale systems, can facilitate this change.
We recommend that businesses post signage about cash discounting at all entrances and point-of-sale systems, over-communicating the incentive to customers as they walk in and pay.
To learn more about starting a cash discounting program, schedule a consultation today by calling
FFSB2B on 724-746-9860 or filling in the form below!
