Accepting credit cards is almost a must for most businesses today. Consumers want to pay with the convenience and speed of credit cards. However, this isn’t always the best option, especially for your business. It involves processing fees and complexity. Sometimes, you simply want customers to pay with cash. To achieve this, POS systems, such as Clover, helps you run a cash discount program. These are four reasons to leverage cash discount programs.
Benefits of Cash Discount Programs For Businesses
1. Customers Are More Likely To Pay in Cash
Customers are more likely to pay with cash rather than a card. While this may seem like an inconsequential benefit, it can be quite helpful. Your business will always have a healthy amount of cash available. This can make covering expenses easier. Plus, when you receive cash, you will definitely keep it (other than refunds), there is no risk of fraud or chargebacks.
2. Payments Are Simplified
Cash payments are about as simple as transactions can be. You give someone a good or service and they give you money in exchange. There are no delays, no data risks and very little risk of errors. While the process of taking credit card payments has gotten easier with tools like the Clover Flex, it is still more roundabout than cash transactions. Cash discount programs just make things easier for your team.
3. Credit Card Processing Fees Are Reduced
When you accept a credit card payment, you have to pay a small transaction fee. This is unnecessary if the customer pays in cash. So, you will reduce your overall credit card processing fees if you offer a cash discount program. Many vendors split their customers (hence the discount) or pass the savings on entirely.
If you combine these savings with an account with no monthly fees, you can save significantly over the traditional costs of accepting credit cards. These tools make it easier to maintain strong profit margins ay your business, especially if you sell high-volume products with thin gross margins.
4. Customers Are Empowered With More Choice
Finally, giving your customers a good reason to pay with cash empowers them to make more choices about how they spend their money. They can leverage the convenience of paying with a card or the savings of paying in cash.
Your business can benefit significantly from making customers feel a great sense of choice and freedom. You can add even more to this by allowing payment options such as mobile app and gift cards. The more options you give to your customers, the happier they will be (and the more likely they will be to shop at your business).
What More? Set Up a Cash Discount Program Today
Get started on setting up a cash discount program today. If you have the Cover POS system, doing this is very easy. Running a program is a built-in option. Additionally, you can set it up with numerous payment options. However, even if you have a different point of sale system, you can easily create your own discount to be applied to cash payments. Doing so could give your business a boost.
Read more business articles.
Originally posted on November 25, 2020 @ 7:06 am