What are the benefits of a cash discount program?
We live in a world where customers now have various forms of payment options at their disposal. From credit card payments to mobile pay, the demand for online payments keeps surging. In the wake of such scenarios, many business ventures using merchant services for electronic payment systems might wonder why they should adopt a cash discount program.
Irrespective of the attention towards digitalized payment services, many customers still prefer cash payments. This fact is particularly valid for purchases in small denominations. Cash circulation remains significantly high, as per many reports. Contactless payments and mobile wallets have undeniably claimed considerable support, but merchants have to incur outrageous sums of payment processing fees. Credit card processing fees have become a source of worry for many business owners.
The brunt of high payment processing costs and interchange fees that come with merchant services can discourage many entrepreneurs. However, avenues like cash discount programs can improve the situation of suffering merchants. We have already dealt in detail with the meaning of a cash discount program. Do you feel intrigued to know what plus points you can derive from adopting such a program? Team Beyond Bancard can help you unlock the possibilities of a good cash discount program.
Benefits of a cash discount program for merchants
We have some compelling advantages for you to understand why you should consider implementing a cash discount program.
Alleviates the burden of credit card processing fees
The most prominent plus of executing a cash discount program is the ability to lower your merchant processing spending. Credit card companies levy a credit card processing fee for every credit card transaction you accept. It can go as high as 3.5 percent for every credit card payment. Thus, when you implement a cash discount program, you no longer have to pay the charges for the merchant service related to card processing. You can save your earnings from getting drowned under the blow of processing costs.
Helps to rope in more customers
Most customers hold an excellent affinity for the word discount. Who does not love to save their money using discounts? If client prospects come to know about a discount program from your merchant venture, you may expect an increase in your customer base. The cash discounting tactic can prove as a great marketing strategy to upsize your sales in the future.
Enhances the portion of cash on hand for your business
Some conventional business practices continue to sustain for a reason. Holding a reasonable amount of cash on hand can prove helpful for your business. Regardless of the popularity of electronic payments and NFC payments, the security of having some money for your business needs is necessary for many business owners. In most cases, there is a time lag between the payment processing at the point of sales and the actual receipt of money in your bank account with card payments. But with a cash discount program, you do receive your products’ worth instantaneously after-sales.
Lowers chargeback troubles
Credit card processing also possesses the risk of chargeback. When you use a cash discount program to diminish the count of customers using credit card payments, you automatically lower your overall processing costs.
Comes with a simple implementation process
Cash discount programs do not require the use of complicated point of sale systems or credit card machines. It is much more lucid to understand and execute for your staff and customers. The usage of cash discount programs is legally valid in all states in the US. Hence, the implementation hassles are pretty minimal.
Enables you to maintain your profit margins
All business organizations strive to maintain their profit figures. The credit card companies charge different card processing fees depending on the type of card and plan your customer uses. Thus, without a cash discount program, you may face the risk of reducing your profits with increased credit card processing fees. A cash discount program allows you to eliminate a large part of your payment processing charges. It neutralizes the effect of credit card processing on your business.
Benefits of a cash discount program for your customers
Decreases the overall purchase outlay of your clients
Most merchants pass on the obligation of credit card processing fees to their clients in the form of increased purchase prices. Thus, when they avail of a cash discount program, they can subside the spending on their purchases. Merchants will not charge clients the extra fee amount, and they can enjoy the same product for a reduced cost.
Allows your customer to have increased payment choices
Customers love to have the convenience of having multiple forms of payments methods. With a cash discount program, clients can choose to pay cash for some forms of payments, while for others, they can go for electronic payment options. Such a diversified payment ecosystem can lure more clients.
Lessens the risk of online security issues and frauds
As per the Globe news wire report, the global payment fraud market is estimated to go up to $18.6 billion by the end of 2029. Many clients feel unsure about the safety of using online payment options due to the risk of misappropriation of their hard-earned money and personal details. Hence, the possibility of having a cash discount program to make cash payments can prove helpful for such worried customers.
Delve into the world of cash discount programs with Beyond Bancard
Our experts can be your supporters if you want to devise a cash discount program for your merchant business. Get savings of thousands of dollars and shoot up your monthly returns with us. We offer unique plans for ecommerce businesses and retailers with a simplified setup process. Gain more insights about our program now!
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