Shoo off the merchant credit card processing fee
Are you prepared to shoo off the merchant credit card processing fee this season? Then here we have a collection of information for you to consider before opting for cash discount programs and merchant credit card processing methods.
Cash Discount Programs create a 100% hindrance free way to collect total sales revenue by passing on the processing fee to the customer paying via check, credit cards or a payment source other than cash. The merchant credit card processing fee is borne by the customer through a customer service charge for using a credit card for the transaction.
What does cash discount program have store in for us?
There are a lot of things to explore about the cash discount program and merchant card processing charge. Let’s discuss in brief.
- The Merchant Cash Discount Program actually paves a route for merchants to transfer the merchant credit card processing fee to the customers.
- Using this method, a merchant will not be required to increase the prices or average rates of the commodities or services offered.
- This concept helps in implementing the service charge to every customer in accordance the purchase.
- This program exempts the customers transacting through cash from paying the charge. Thus, it implies that people using cash will not be charged the additional service deductions on transactions.
- The listed prices or rates provided by the merchants will now be the actual bill rates for only those customers paying with cash.
- The addition of the customer service charge will be shown on the receipt in the detailed description.
- In consideration of the cash discount program, the companies dealing in the credit card sector of the economy has readily approved to levy a merchant credit card processing fee. Also, the companies are more than comfortable with providing a cash discount to people paying using cash, cheque or any other mode of payment.
- This concept has been adopted by various firms, regardless of the type of industry they’re catering to. One needs to calculate the monthly volume of sales and an average of the ticket price in accordance with the terminal application. Cash discount program can actually eliminate the merchant credit card processing fee virtually. Isn’t it amazing?
Acceptance of the concept in the customer sector of the economy
Now the question arises on the usage or adoption of this program in the customer sector of the economy. Do you think the customers will accept on paying the additional charge on payments done via credit card? Let’s take an example to understand this.
Considering driving your car on a toll road. You are spending money on fuel, and even the car belongs to you. But still, you have to pay a toll for availing the convenience of the new expressway. Connecting the same thing with using a credit card, the customers have a benefit of going cashless if they’re using their plastic money wisely.
A buyer does not need to run errands to an ATM if they’re availing benefits of a credit card anywhere. Plus, the additional transaction cost of withdrawing the currency from an ATM actually seems to be worthless.
Thus, for enjoying the benefits of latter, buyers will have to give a little portion of their cake to the merchants. Therefore, the merchant credit card processing fee will not be a sales hampering process and customers would actually not mind paying a very low percentage of their purchase, extra.
Also, one needs to remember that the cash discount program is completely different from surcharging made by MasterCard and Visa. Surcharging program was specifically designated to cater certain fields such as taxes, utilities, governmental fines, sanitation, schools etc.
1.Why cash discount program?
Cash discount program does not only helps in cutting off the merchant card processing fee but it has a lot more store in for us. This concept aids like a bonus to the businesses that are greatly affected by the high-end expenses of processing. Taking the example of a small ticket merchant, such as a candy shop or tea house and that of a big profit-making business, the lower ticket vendors may undertake transactions size up to 4-8 dollars per sale or maybe even less at times. But a big company might be undertaking an average of $100 dollars per transaction. If a customer is using a credit card for both of the transactions, the gradual impact on the overall profit comes out to be dramatically different. Not only this, cash discount program also serves as a great marketing tool for many companies. The simple method of providing a discount on cash transactions also attracts a lot of customers and thus, helps in improving sales over a gradual period.
2. Will cash discount program cater to all types of businesses?
The cash discount program is actually beneficial for firms offering comparatively low ticket merchandises because the business is transferring the merchant credit card processing fee to the ultimate buyers.
Swype Fast – The best gateway to cash discount program
- Swype Fast is a trusted provider. It is amongst one of the best terminal application gateway portals providing very good customer service. The Swype Fast Cash Discount Program helps the merchants to waive off the whole merchant credit card processing fee. This also implies that there’ll be no increment in the prices of the commodities and services provided, thus stabilizing the overall prices, along with maintaining the quality.
The business technology provided on this platform actually enables the merchants to levy a merchant credit card processing charge on their buyers. This service fee is charged as per the guidelines of MasterCard and Visa processor rules and regulations. As previously mentioned, under the Swype Fast cash discount program, the customers can discount their additional fee by paying via cash mode of transaction. Swype Fast works quickly even under difficulties and accumulates the complete revenue by itself.
There are many types of chargebacks, and the process can often be frustrating, costly and timely.
This document will help you better understand what a chargeback is, the time frames in which a chargeback can occur, and how to effectively prevent these from impacting your busines
In 2000, in the wake of the dot-com bust, Amazon was forced to sell almost $700 million in convertible bonds to investors abroad. In fact, the company had to offer an extremely interest rate (7%) just to complete the deal. A month after they closed the deal, the...read more
How do I know if I’m paying too much?
Take the fees on your monthly statement and divide them by the total volume that your business processed for the corresponding month. Multiply that number by 100…