There are about 90% of small business owners that do not do the cash discount because of either they do not understand it or they fear that their customers are going to quit coming to their establishment because they are paying for processing fees.
This is a well-known argument that small business owners fear and often say. However, this isn't true and there has to be a defined line of running your business like a business and yet reward your customers when they come back.
Let me explain how the cash discount works. Let us say that your customer pays $10 for a meal and pays with cash. Ask your customer how much money did you make vs. a customer that paid with a card?
So if a customer pays with the cash you make more money because you aren't paying for processing their card; am I correct?
So if you are making more money then the only thing that is left is your fear of customers getting upset about paying these processing fees am I correct? The customer will always say yes. If they do say no then find the root cause...
Then ask the small business owner that if they offer any rewards or loyalty programming? Often your small business merchant will say that they have some sort of rewards program. This is often a third-party program and doesn't really offer them great benefits and actually is more work than it should. In most circumstances, these programs aren't transferrable and are designed to keep the small business owner in a fixed rewards program that is often hard to get out.
The rewards program with PrimaKeys Marketing Solution is straightforward. The small business owner can set the limits. For this example, the limit would be $100. If your customer spends more than $100 the cost for processing at 1.69% would be $1.69. Even though your customer paid for the processing fees of $1.69 the rewards program gave them a credit of $5 on their next return. This is called loyalty and getting your customer to return.