Eliminate Merchant Fees in the Third Quarter and Beyond with the Cash Discount Program!

Clover Flex Cash Discount

Eliminate Merchant Fees with the Cash Discount Program from Buy Local Bowling Green and Kentucky CPS! Sounds too good to be true, right? Well, it’s not. We have many clients from Liquor Stores, Salons, Counter Service Restaurants and more using this new program. You may be wondering, “What is a ‘Cash Discount Program?’”

Credit card processing can come with some hefty fees and is becoming increasingly expensive for merchants. This is especially a challenge for small businesses with small budgets. Interchange fees, otherwise known as swipe fees, can become a financial burden on small businesses. This is where the cash discount program comes in.

If you are a business owner, big or small, you’ve most likely  heard something about the cash discount program in the merchant service industry. However, this program has come with a fair amount of confusion. Many wonder about what the program can and can’t do. We are going to take a closer, more detailed, look at what this program. We’ll give you the information you need to help decide if this is the right merchant service for you.

Zero Credit Card Processing Fees

By offering access to a cash discount program to customers who pay with cash, merchants are able to eliminate 100% of their processing fees with the addition of customer service fees on all sales. In this situation, merchants are required to display a customer-pricing notice. This will inform each customer about the customer service fee that is charged on all transactions.

An easy example. A merchant charges a 5% service fee. On each item the notice will reflect that a product or service that is listed at $100 will actually be $105. That is unless the customer is paying with cash. In this case, the customer paying with cash will be discounted. The service fee charge goes away and they only pay the original $100. Convenience or surcharge fees are not the same as a cash discount program.

You may be asking yourself, “Would it not be easier to just settle with increasing the price by 5% and call it a day?” That’s a fair question, and honestly, the result may or may not be the same in the end. However, the transparency with the cash discount program will be a detail that is not lost on your customers. The Cash Discount Program is automated. Where surcharge fees are manually calculated. This requires pricing to be increased across the board. That results in customers always paying “full” price. Customers generally respond favorably to the option of saving by paying with cash. In short, show me someone who doesn’t like to save money on purchases and I’ll show you a liar. Give the people what they want and your business will benefit in return.

A Marketing Tool


The cash discount program can also be a great marketing tool, which can potentially attract new customers. Customers are naturally drawn to the word “sale.” Most stores will display a “sale” sign year round to lure customers into their store. Getting people in the store, sale or not is the ultimate goal. Ideally, they come in for the sale items and walk out with much more. Although a 5% discount across the board does help merchants. The cash discount program can be a better and more powerful tool when correctly implemented.

Being able to eliminate up to 100% of processing fees is something that is extremely alluring to most merchants. This is also something that merchant level salespeople (MLSs) benefit from as well. The higher than average margins that come with the program mean they make more as well.

Although this is an amazing opportunity for the industry, be wary of MLSs and ISOs (International Standards Organization). Some are exploiting the program and following less than ethical practices. When choosing a partner we hope you choose Buy Local Bowling Green. To find out more message us on Facebook or contact us via email at BuyLocalBG@Gmail.com.

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