cash discount to offset credit card fees

M

mike450r

New member
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.
 
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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.
mike450r said:
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.
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Sent from my Pixel 2 using Tapatalk
 
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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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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
 
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Who are you processing with? Look into Vantiv/World pay if you haven’t already
mike450r said:
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
Click to expand...
Sent from my Pixel 2 using Tapatalk
 
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cash discount truly works well with pizzerias. I specialize in it and have not seen any pizzeria owner who doesn’t like it after they try cash discount. Yes. A few customers will say something but they will still come back and get used to it as long as you have good food. And customers complain about anything anyway. I used to work in restaurants as well so I know any restaurant will get complaints just about anything.
 
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