Tips for Selling Cash Discount Merchant Services

A cash discount is simply the weaving of a small percentage from the overall price offered to those who decide to pay the bill before the due time. In short, merchants are offered these discounts to help them save money, if not much, then a little.

There are many ways in which cash discounts can be sold and made attractive to the customers, especially merchant services. The service fee added to the receipt can be cancelled out if the customer decides to pay through cash or the debit card. 

If you are interested in cash discounts, the first thing you need to do is call your credit card processor so that the business is taken care of, and the next time you go out to buy something, you can avail yourself of the cash discount. Below are listed few tips for selling cash discount merchant services and why should they be used.

High rate of profit margin;

The profit margin is high in cash discounting compared to all others because, in cash discounting, the customer is not linked with the cashier rather than the merchant account. For instance, under the cash discounting program, there is no increase in the products’ prices. Here the merchant provides a discount to the customer because the money that has to go to the cashier is not involved.  On the plus side, the rates are lowered through cash discounting by the merchant services.

An example of cash discounting can be that if a company selling a product for $ 20 said that they would provide a discount for those who are paying through cash. Now those who are not paying would be giving an extra amount that is a must for the transaction. This way, the money of the customers paying through their cash is saved. If the merchant is doing $10,000 in volume every month and in return, he is just paying $300 as fees. With cash discounting, the sales professional can go up to $400, saying that it is the maximum amount allowed. The merchant would then be paying $400 and receiving the same amount, which is $400 from the customers, thus getting the money he has paid back. The business owner has no concern with the amount of credit card processing fees because it is just passed on to the customers.

Believe in Cash Discounting;

This may sound old school, but believing in something before actually executing it helps make it a successful plan to almost fifty percent. Before selling a cash discount, you must know what it is and read it thoroughly. After analyzing everything, you must start selling the cash discount because it excels to a greater height when you believe in something.

Be precise about the model and type:

The second step that will help you excel the cash discounting is to be very sure and precise of the model you are going to use and the type that will be used with it. The cash discounting becomes indeed very difficult in restaurants where the customers get the receipt and add-on tips. Such places are not a perfect ideal for the explanation of the cash discounts but the places such as a retailer or any departmental store, these services can be executed smoothly there. While talking to the retailers, you can tell them how you will bring their processing fees down to zero. You may further explain it, to get their full attention, by telling them that you can provide these retailers with cash discount programs that will offer a discount to the customer. You can also tell them that the processing fees won’t be charged to the retailers but the customers. Thus the discount becomes the current price, and the credit card customers pay more.

Lease the terminal:

Cash discounting is not an easy job to carry out, and so in order to execute that, there are leases given to keep everything in balance and check. Sometimes it happens that it requires excellent programming capabilities, and there are not many people who can execute the programming that smoothly. A reasonable lease can be done for the cash discounting in order to make it work. As terminals are more challenging to program, you can always have a flexible lease.

Focus more on the positive aspects:

While you make up your mind to lure a merchant for a cash discounting offer, make sure to be mentioning any negative thing about it in the last when you have successfully gained the customer. Mentioning any negative thing in the first place will never get you any customer, and it will permanently ruin things and the image for you. Be careful with your words and be very precise. Precision is what makes cash discounting a success.

Offer Merchants to get out of it:

Another vital tip for bringing in more and more merchants is to offer them a way to get out of cash discount. Even if they want to get out, all you will have to do is switch their account to a regular merchant account that won’t change much or make you lose a customer. But telling your customers that there is a way out of your offer always makes them believe in you and the offers that you provide. They will switch their accounts to cash discounting and wait for a couple of months or maybe more to see any difference they witness.

Make sure to set with a good company:

The last tip but most important of them all is to make sure you are setting yourself with good company. One that has a prestigious reputation in society is to choose. There are forms available online that can be filled after you ultimately see which company will suit you.