What is the cash discount program- From the Merchant’s Perspective?

As a merchant involved in any particular model of business, you must be aware of the technological progression and surge of digital payment methods in every section of the economy. It is undoubtedly easier to carry a couple of plastic cards more securely than a certain amount of cash with you. Due to its convenience credit card and other digital modes of payments soared in popularity worldwide. All the merchants were also bound to accept every digital form of payment in fear of losing out businesses.

The issue of Processing Fees in credit cards

All the merchants worldwide are happily accepting credit card methods of payments to support the digital wave and be a part of the technological progression. But the merchants need to pay a certain percentage of fees like credit card processing fees to the concerned service provider to get the payments credited to their accounts. And these processing fees kept hiking every passing quarter. This was bad news for the merchants as they were losing out on their important margins due to this processing fee fiasco.

What is the cash discount Program?

Just like the age-old traditions in trading, a cash discounting program is nothing but the incentives offered to the customers in terms of discounts when they pay for their purchases in cash. Having a discount over the mark-up prices encourages the customers to make the transactions in cash rather than plastics.

Availing a cash discount merchant account

Using the services provided by a professional cash discount merchant account not only does the obvious i.e. letting you offer discounts on transactions done with cash and help you save on credit card processing fees. It also allows you to charge a premium over the mark-up price when your customer decides to make the payment through a credit card. This allows you to save on the processing fees even when you accept payments via credit card.

Benefits of Cash discount programs for merchants

  • Savings on processing fees

Yes merchants can save a hefty amount on their margins in terms of processing fees on credit card payments by availing the services of cash discount merchant account. But the advantages of using cash discount programs are not just limited to this.

  • Support on Implementation

A cash discount merchant account provides adequate support to the merchants to easily implement the cash discount program drives. It provides proper training, soft skills, and free POS machines for the smooth functioning of the program. This allows the merchants to implement the changes peacefully with disrupting their customer base and sales volume.

  • More availability of Cash

Successful implementation of cash discount program means more cash transactions. This allows immediate credit for the transaction amount into the merchant’s books. It makes cash available immediately and in greater quantity. This will increase the merchant’s margins exponentially.

Nothing in this world can only provide you with benefits without causing a certain amount and level of drawbacks.

Let’s look at the disadvantages a cash discount program can cause

  • Lack of cash customers

Nowadays not many people prefer to move around with cash more than it is barely required. Handling cash is not easy and secure. In this digital era is easier to make payments through plastics. So merchants may lose customers who prefer digital payment methods strictly.

  • Using proper Signage

It has been made mandatory by credit card companies to put up compulsory and explanatory signage at various positions in store clearly explaining the discounts merchants will provide on cash transactions. This causes extra expenses on part of the merchants and can also create confusion among the buyers if they fail to understand the signage.


Just like everything in this world has mixed results, so does this program. So research and try to understand every aspect carefully before making a call.

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