Cash Discount Program
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To get started with the cash discount program sign up using the button below. This is only for merchants processing less than $7,500 a month. If you do more than $7,500/mo please contact us directly for special consideration.
Frequently asked questions
Why would I want to implement the Cash Discount Program?
Other than the ability to virtually eliminate your monthly processing fees, the Cash Discount Program can really help those businesses that are most impacted by high processing costs. Consider small ticket merchants like a sandwich or coffee shop. You may have an average transaction size of only $5-8 dollars (sometimes even less). The underlying Interchange cost on a debit card used as a credit card is .05% plus $.22 per transaction before any processor fees. If you accept a debit card on a $5 transaction, your effective rate (fees divided into the sale amount) will be $.2225 divided into $5 or 4.45% before paying any additional fees! Compare that to a business that has a $100 dollar average transaction where their total costs are $.27 so their effective rate is now only 0.027%. The same credit card was used for each transaction, but the overall impact to profit is radically different. Using the Cash Discount Program can mean the difference between a business that is profitable and one that is just squeaking by.
Is it legal to offer a Cash Discount?
Cash Discount programs are legal in all 50 states per the Durbin Amendment (part of the 2010 Dodd-FrankLaw), which states that businesses are permitted to offer a discount to customers as an incentive for paying with cash.
Is this some kind of new program?
No, in fact it’s been around for decades in Europe and is used across the US in gas stations where a cash discount is offered at the pump. Gas stations have been using this program in the US for over 15 years. Many national, state and local governments including the DMV, Secretary of State, Post Offices, Schools, Courts, and the IRS implement a Service Fee.
What do I need to do to make sure I’m using this program correctly in my business?
In order to correctly implement a Cash Discount program, you don’t need to change any of your prices – you simply post signage (that we will provide) that states that all transactions now carry a 4% customer service charge. The proprietary technology is provided by Evo of NY in conjunction with our hardware and processing partners.
Is this the same thing as a Surcharge? I hear that’s only allowed in certain states.
Won’t my customers be upset by this fee and want to go elsewhere?
I have a high average sale amount and the 4% might be viewed as being too high for my customers to stomach. Couldn’t I absorb some of that fee and still save at the same time?
On a case by case basis, we will work with you to implement a hybrid solution where you charge a Service Fee of anywhere between 1-4% to your consumer and you.