Due to the continuous modernization of the world and society’s desire to make everything easier, people prefer many things to be more compact and efficient. That principle even applies to payment methods since recent surveys have proved that over 60% of the USA population prefers to pay off their purchases using a debit or a credit card.
Even if this method seems the easiest way of payment, it can pose a significant disadvantage for business owners because of processing fees that keep increasing. Major commercial businesses do not have to worry as much about this aspect as small businesses do because these fees may be insignificant to their capital.
If you happen to be a small business owner, you probably have heard about the cash discount program that is designed to help you eliminate the problem of processing fees and attract customers. Several entrepreneurs have embraced this idea to help their businesses grow, but if the concept is still a bit foggy, we’ve prepared a description of some of the main features of cash discount to clear things up.
Safer Transactions
If you happen to be a business owner or someone interested in finances, you might have heard about chargebacks, additional fees that most of the time do more harm than good to merchants. In the long run, this type of ‘friendly fraud’ can affect the safety of your business, both financially and legally.
To assure the safety of your business and your customers, the best option is to encourage your clients to switch to cash payments instead of credit cards. Paper bills are not only easier to use but also easier to manage. Besides eliminating fraud risks, you will also increase your profit and offer your clients reasonable prices.
Eliminate Processing Fees
One of the most noticeable benefits of a cash discount program is that it helps businesses avoid one of their biggest headaches: processing costs. Processing costs typically range from 1.5% to 3.5% of the overall transaction amount. These fees might affect your profit if you are a small business.
An accessible solution that may reduce the amount of money your company has to pay banks and processors is to apply for a cash discount program. Basically, when you get the payment, it will travel straight to your cash register with no additional costs, allowing you to save money that you can put toward improving your business.
Transparency
Many individuals are aware of the credit card processing fees, but even fewer are aware of how that percentage is divided. Interchange, assessment fees, and payment processor costs all become muddled, making it difficult to keep track of all the figures. On the other hand, cash discount schemes are simpler to handle and easier to comprehend.
You can keep track of your earnings and spending without worrying about paying additional fees if you receive payment in cash.
Furthermore, many cash discount systems use specialized technology that tracks all discounts and generates comprehensive receipts for your customers. If you want to find out more about the technology behind it, click cashdiscountprogram.com. Customers are more likely to return to your business if you provide them with a straightforward and transparent receipt.
