Implement a Cash
Cash Discount Program is Here
Sick of Fees?
Now you can leverage our technology to virtually eliminate all of your credit card
processing fees. With our Cash Discount Program you will not be charged a
percentage rate or transaction fee on ANY card you take. In the example on
the left, VMS saved the business owner over $1,300 per month. Whatever
your statement shows as total fees charged is the savings that you will see when
you join our Cash Discount Program.
How Cash Discount Works
Step 1: Once you have purchased a Clover device, send us all of your inventory and pricing.
Step 2: We will provide signage for your store to display how your new Cash Discount Program works.
Step 3: 4% will be added to your entire inventory, when a customer pays with cash or check a 4% discount will be applied at the time of the checkout and calculated on the customer's receipt.
Benefits of a Cash Discount Program
Reduce Chargeback Risks
In addition to the fees that automatically come with credit card transactions, these transactions can sometimes lead to additional fees. Chargebacks only occur with credit card payments, so when you encourage customers to pay in cash, you reduce the risk of a chargeback.
Increase Cash on Hand
When customers make a cash payment, it can mean more access to cash on hand for your business.
Attract Bargain Hunters
Who doesn’t love to get a discount? When customers see they can pay less by using cash, they’ll leave your store feeling like they got a great deal and will likely come back next time with cash in hand.
Keep Profit Margins Consistent
It’s important for a business to be able to maintain consistent margins so they can accurately budget and make financial decisions for the future. With a cash discount program in place, processing fees are no longer a wild-card.
Reduce or Eliminate Fees
Save your business from having to shoulder the costs associated with credit card processing. With a cash discount program, it will be just as if credit card processing fees were nonexistent.
Frequently asked questions
A cash discount occurs when a merchant decreases the price for cash purchases. A cash discount works by applying a small customer service fee on all customer transactions. This fee is removed if the customer pays with cash or in-store gift card. A cash discount is not applied to a debit card transaction as they still incur the same credit card processing fee.
Accepting credit cards at your business has almost become a necessity. But, to accept credit cards there is an expense associated. By implementing a cash discounting program you give your customer the option to pay as they want but don't incur additional expenses as a result.
Cash Discount programs are legal in all 50 states. The Durbin Amendment to the 2010 Dodd Frank Law states that businesses are permitted to offer a discount to customers as an incentive for paying with cash.
A cash discounting program is ideas for businesses who have a low average ticket price, around $10-$15. Consumers are carrying cash less and less often so it's important to take into consideration the need to accept credit cards but also that the majority of your business may be via a credit card transaction.
No, cash discounting is not a new concept, it has been around for years. However, it has become increasingly popular with the increase in credit card payments and the processing cost associated with it.
Even though customers can save by paying for purchases with cash, 98% of customers will still choose to pay with a credit card. When you implement a cash discount program properly you should not lose any customers.
Yes, a cash discount plan with VSM will eliminate your credit card payment fees. Keep in mind there is still a cost associated with your equipment and a minimal monthly fee for the cash discount app.
A surcharge is a fee that is added to the price of an item or service when the customer indicates they are paying with a credit card. In contrast, a cash discount occurs when a merchant decreases the cost of an item or service when their customer indicates they are paying with cash. Cash discount programs are not the same as surcharges because they do not levy a fee that is added to a credit card transaction. Cash discount programs are legal in all 50 states. There are still several states that do not allow surcharging.
Ready to Get Started?
Speak with a business specialist.