Cash Discounting & Credit Card Surcharge – POS

What is traditional Credit Card processing?

Merchants are typically charged a fee by their payment processor every time a customer makes a purchase using a credit card. These fees can vary depending on the type of card used and the processing method, and may include transaction fees, monthly fees, and other miscellaneous charges.
The combined cost of these charges can add up to over 4 or 5% of the sale. Merchants should do their research and choose a reputable payment processor that offers transparent pricing, flexible processing methods, and a high level of security.

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What is cash discounting?

Cash discounting is a pricing strategy used by merchants to incentivize customers to pay with cash instead of credit cards. The idea behind cash discounting is that merchants who accept credit cards are typically charged fees by the card issuer or payment processor, and these fees can be quite high. To offset these fees, merchants may offer a discount on the purchase price to customers who pay with cash, effectively passing the savings from lower fees on to the customer. Cash discounting can be implemented in various ways, such as offering a specific discount percentage for cash payments or charging a higher price for credit card transactions and a lower price for cash transactions.