Cash discount−friend or foe?

Editorial Team

3 min read
Man taking five dollar bill out of wallet

Cash discounting allows business owners to legally recoup a majority of their payment processing fees, which can have a positive impact on their bottom line.

What is a cash discount?

A cash discount is the practice of offering a discount to customers who pay with cash, debit card, or check. Gas stations and other specialty industries have been using this process for years. During the past decade, the practice has become more common and used by business owners in many industries.

Cash discount vs. surcharge

While cash discounting offers a discount to customers who pay with cash, debit card, or checks, surcharging is the practice of adding an additional charge to the total sales transaction to cover the fees associated with credit card processing. Credit card surcharging is regulated by the card brands, while cash discounting is not.

Maximizing the benefits of a cash discount

Cash discounting does not have restrictions like surcharging, but there are best practices that merchants should consider following. The Cash Discount App automatically implements these best practices with minimal effort required by the business owner.

The app allows the business owner to offer a discount for cash, debit, or check payments without losing their profit margin for the discount given. Customers are paying the new regular price, thereby eliminating credit card processing fees for that transaction. Cumulatively, the more customers that pay with cash, the less your monthly credit card fees can be overall.

The Cash Discount App also comes with bundled features at no additional charge, such as:

  • Labels and price tag module: Print labels and price tags for all your inventory showing the cash price and credit price for each item. The labels can be printed using one of many economical Brother label printers.
  • Rewards and loyalty program: Build customer loyalty and retention using a tiered rewards structure where each purchase translates to a certain number of points and can be redeemed for further discounts or other rewards. To top it off, every customer purchase at your location generates a customizable SMS message easily controlled from within the app showing them the number of rewards points they have earned and reminding them that they can be redeemed at your location. The system is simple to use and manage and can work automatically with minimal intervention.
  • Invoicing and remote payments: Create orders within your Clover POS system and easily send an invoice to your customer. It’s a great tool for phone orders, service jobs, and customers who are not at your location. The customer receives the invoice via SMS or email, clicks on the link, reviews the invoice, and makes a payment online. Once payment has been completed, it will update the invoice in your Clover POS showing as paid.

The Cash Discount App available in the Clover App Market has received rave reviews and thank you letters from business owners nationwide because of the money the app has helped bring back into their pockets. It can be installed on all Clover devices except Clover Go.

For further information and onboarding sessions, email, or call or text (305) 398-7571.


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