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Education
some companies apply fees across the board to
cover transactions, a cash discount makes it easy to While cash discounts target
save customers who pay in cash additional and un-
necessary expenses. those who pay in cash, dual
• Cash discounts incentivize savings to lower pricing targets those who pay
transaction fees: A visible cash discount serves to
incentivize customers to pay in cash. Ultimately, with a credit card.
this means that cash-paying customers save money
and businesses also end up paying out less in fees—
a win-win.
ditional fee whenever someone pays with a card.
• Cash discounts lower payment fees: When compa- Although those who pay in cash are also rewarded,
nies offer a cash discount, they are instituting a sig- the real focus is on cardholders.
nificant change—fewer fees. Nobody likes paying
extra fees, and this is true for both businesses and • Dual pricing adds payment fees: Cash discounts
customers. Through a cash discounts program, the take away fees; dual pricing adds them. Rather than
total number of fees is reduced incrementally every focusing on cutting down on unnecessary fees for
time a customer makes a purchase with cash, which customers, this practice applies them to the rel-
can add up to significant savings. evant customers (those who pay with a credit card)
instead. Businesses that offer this solution will dis-
• Dual pricing targets customers paying with a play a separate line item on the customer's receipt
card: While cash discounts target those who pay that shows the fee for paying with a credit card.
in cash, dual pricing targets those who pay with
a credit card. Instead of offering a discount when • Dual pricing is more closely regulated: Although
someone pays in cash, dual pricing applies an ad- cash discounts are largely considered a business de-
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