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Education

Additionally, reference to the pro- 3. Hidden costs: Some providers will require setup fees or include hidden
gram should be made verbally at the costs. In most cases, you can demand these be waived. Cash discount
POS. It is important the correct lan- programs are simple in concept. A good provider will be completely
guage is used, such as "Would you transparent in terms of pricing and not charge unnecessary fees.
like to save (X amount) today by pay-
ing in cash or do you want to use your 4. Fee options: Good providers offer two service-fee pricing options –
card?" This language clearly indicates either by an average ticket size (flat fee) or a percentage of the sale amount.
the service charge applies to all trans- Businesses with a big ticket discrepancy need the percentage model, while
actions. It is also recommended the businesses with consistent average ticket size work well with a flat fee.
merchant has quick reference infor-
mation handy to give to customers if 5. Support: For a successful rollout, merchants will need cash discount
they have additional questions. supporting materials such as in-store signage, training guides and videos,
quick reference handouts, as well as a hotline for answering customer
Unlike surcharge programs, cash dis- questions. A good provider will offer all of these things free of charge,
count programs are seen in a better in addition to being on-hand to troubleshoot equipment, answer billing
light and fare better with consumers. questions or assist with additional training.
The notion that cash discount pro-
grams prohibit sales for customers Matt Nern joined the SignaPay team in 2016 and is responsible for overseeing all aspects related
who do not carry cash is a misconcep- to sales, business development and marketing. With over 18 years of payment processing industry
tion based in fear. At SignaPay, we've
researched this with multiple mer- experience, Matt previously worked as Senior Vice President of Sales and Marketing at Secure
chants employing cash discounts. In Bancard, LLC and as Vice President of Sales at CrossCheck, Inc. He has recruited, trained and devel-
all cases, credit card volume has re- oped numerous sales teams nationwide that consistently exceeded sales projections. To learn
mained consistent or even increased more about implementing a cash discount program in your business or becoming a trusted PayLo
month over month, with reports from authorized reseller, please visit getpaylo.com or call 877-776-9953.
merchants that their customers disre-
gard the convenience fee in 99.2 per-
cent of transactions.

How do you evaluate cash
discount programs?

Following are five points to consider
when evaluating cash discount
programs.

1. Legality: Not all cash dis-
count programs are built the
same. Make sure the provider
you choose has good standing
with the Better Business Bureau
and can provide clear evidence
the company adheres to all state
and federal laws in its processes.
In addition, ask to see a sample
receipt. In order to adhere to fed-
eral standards, the cash discount
program must show the service
fee or discount amount clearly to
the customer.

2. Equipment: Make sure the
technology and equipment pro-
vider accepts all card types as
well as mobile wallets and EMV
chip cards. Also, cash discount
technology does not work on all
equipment brands.

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