As a business owner, you want your store to thrive. You want your customers to be happy and you want them to keep coming back to your business. After all, every returning paying customer is profit in your pocket. However, some customers might not be happy about paying the credit card surcharge or processing fee.
Businesses have started passing along the credit or debit card processing fee along to the customers because a business has to prioritize profits. Even though you care about your customer, if your business does not operate on a profit, it won’t be able to sustain itself for very long.
When you add an additional fee on top of the listed price of the product or service, that is called a surcharge. If your customer wants to buy a product in your store for $10 dollars, they would have to pay the surcharge fee on top of that price simply for using a credit card service. Instead of paying $10 dollars, they could end up paying $10.60 as an example of how it works. Some customers might not mind the extra cost because a credit card offers a more convenient solution for them. These types of customers would be more than happy to pay the surcharge.
Some customers, however, might be less than thrilled at the prospect of paying extra. These customers would see the surcharge as unnecessary or perhaps even unfair of the store to offload than cost unto them. In the worst case scenario, those customers might choose to go elsewhere for the option of using a credit card.
This is why a cash discount program exists. With a cash discount program, your customers walk away much happier because they end up paying a cheaper price for your product. There is no surcharge, service fee, or convenience fee involved. If a product in your shop is $10 dollars, then that is all your customer will pay.
A discount program like this is not an entirely new concept. Gas stations have been implementing this system for a while now. It is only recently that merchants have begun jumping on board with the program because they are starting to see the benefit of it. Businesses that have already started implementing this program make it work by enticing their customers to go with the cash option.
One effective strategy that many businesses are starting to employ is to post two types of prices on their products or services. They would post the price the customer would pay if they used cash and the price they would pay if they used a credit card. This automatically entices the customer to go for the cheaper option and therefore, many of them would opt for the cash payment approach.
Why is a cash discount better than a surcharge? Well, the answer is simple. Every customer wants to pay less money for an item or service if they could. All your business needs to do is give them that option and you have already won them over.