Controlling your overhead expenses can be tough, especially when the economy tightens. If you’re in retail, that means finding ways to get more mileage out of services while trimming expenses. Sometimes that means in-housing your marketing efforts and redirecting them into less cash-intensive methods.
Other times, it means finding ways to defer unavoidable expenses to customers. On that end of the spectrum, cash discount credit card processing represents one of the biggest sources of savings for companies that depend on credit card transactions for a large share of their income.
Setting Up a Cash Discount Program:
Cash discount programs require a little work to get going because you need a POS that is ready to handle them. If your current system doesn’t have it as an out of the box feature, your choices are to either create a workaround using whatever custom keys you have to set up the functions you need or to upgrade to a system like the Clover Station that supports cash discount credit card programs. The key feature to cash discount programs is setting the baseline price for the item at the higher price charged for card transactions. The discount offered to cash customers is presented clearly on signage and by employees as a discount to reward those who pay in cash and not an upcharge for card users.
This messaging is important for marketing the program as a positive feature of your business. Card users may feel resentment at the idea of being charged more simply because they need to use that payment method, but they’re less likely to feel that way about a discount. In fact, some may reconsider their options and choose the option that brings savings. Customer buy-in is vital to making this work, so messaging is very important when you’re first putting these policies in place. It’s making the change with your regulars that will be most of the challenge, customers who come into a place for the first time tend to accept its policies as a matter, of course, more often than not.
Upgrade Your POS and Save Even More:
Setting up a cash discount program has some other fringe benefits, beyond just deferring most of your processing costs. If you implement it at the right time, you can effectively upgrade your equipment for free or at least at a steep discount. How does that work? Well, many, if not most, processors sell equipment. It just makes sense, because clients need the right gear to use their new processing agreement and merchant account. Many of them offer deals for deeply discounted equipment or even new models of popular systems like the Clover Flex.
Find yourself a processor who supports cash discount processing and peruse their programs. If they’ve got an offer for free POS gear with a service plan and a Clover Flex for sale, then you can set up processing, get your equipment, and set up a program that keeps your costs for credit transactions low all at the same time. You’re basically getting the service and the equipment it runs on for free or very near it. What could be better?