cash discount to offset credit card fees

Discussion in 'POS, Software, and Technology Discussion' started by mike450r, Oct 7, 2018.

  1. mike450r

    mike450r New Member

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    Just curious if any of the members are doing this. In my state its legal to actually charge a service fee for cards to offset the cost to the vendor. I have said for ages that the fees should be passed on but recently I got an email from a 99/month processor that did just that and all the sudden I was afraid. Now seeing a POS that can do this automatically I am much more interested. Basically you adjust all your menu prices up 2.5-3.5% or whatever your processor rate is. Then when someone pays cash the sytem automatically applies the same 2.5-3.5% discount to the cash ticket.
     
  2. Steve.L

    Steve.L Member

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  3. Steve

    Steve Active Member

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    I don't do this, for as many times as I wish I did. We've found our best rates so far with Vantiv/World pay. I'd look into them before deciding.
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  4. Mondo

    Mondo Active Member

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    I have always felt that these type of small fees give customers the impression that you're nickel and diming them. Raise your prices a little so the fees are baked into the price. Then YOU get a 2.5-3.5% discount on your processing fees whenever somebody pays cash.
     
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  5. mike450r

    mike450r New Member

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    Good point Mondo, to me part of the point was to encourage more cash sales also to keep overall credit sales lower and cash sales higher to avoid even more charges. Anymore that is just a losing battle as I see my card sales catching cash more and more by the day
     
  6. Steve

    Steve Active Member

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    Who are you processing with? Look into Vantiv/World pay if you haven't already
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