Updated: Jul 9, 2018
While cash discount programs are not especially new (they've been around in Europe for decades), they are now becoming the hottest thing to hit small business practices in the United States, with the advent of programs like Omega's Limitless Processing.
Made easier by the use of patented technology, The software automatically issues the posted cash discount to the customer's ticket when they pay by cash or store gift card, based on a service charge that is applied to every sale.
According to the Small Business Association (SBA), about 20 percent of small businesses fail within the first two years and about 50 percent suffer the same demise in the first five. While there are a number of factors leading to these statistics, a recent Insurance Quotes infographic, posted by Entrepreneur.com, showed that 29 percent of businesses fail because "they run out of cash." Unfortunately, new business owners often underestimate the cost of doing business; credit card processing fees notwithstanding.
By charging a small service fee on every store transaction, and offering a discount to customers who pay with cash, small business owners can save thousands of dollars every month on credit card processing fees; dollars that can be spent on much-needed business boosters, such as marketing and expansion.
Unlike surcharge programs, cash discount programs are seen in a better light, and fare better with the end- consumers. There has been a misconception that a cash discount program would prohibit sales if a customer does not carry cash.
We’ve researched this with multiple merchants using Limitless and found it to be unbiased fear. In all cases, the credit card volume has remained consistent or even increased month over month, with reports from merchants that their customers disregard the convenience fee in 99.2% of transactions.
We have many merchants who are saying the same things "Since I started using this system, I've saved about $1500 a month on credit card processing. So far, only a couple of customers have balked at the service fee. When I explain about low margins, the costs involved with the new (EMV chip) hardware, and competition, they seem to understand. Besides, they always have a choice to pay with cash instead. I haven't lost any customers, and I've saved a bundle with Limitless."
No longer are merchants forced to pay for those credit card company incentives such as miles, points, or cash back programs; now, merchants can legally, and easily, shift those costs to the cardholder, and send those credit card processing savings straight to their bottom line.
About Omega Bank Card Services:
Omega Bank Card Services was founded in 2002 on the principles of bringing local service with honest and transparent pricing to all businesses. If you are interested in learning more about implementing a cash discount program in your business or becoming one of our trusted Limitless authorized resellers, please visit www.omegabankcard.com or call us at 1-678-689-8901