If you are a business owner, big or small, you’ve most likely heard about the cash discount program in the merchant service industry. However, this program has come with a fair amount of confusion about what the program is and what it is not. Although this is an amazing opportunity for the industry, be wary of MLSs and ISOs (International Standards Organization) who are exploiting the program and following less than ethical practices. When choosing a partner for your cash discount program, it is crucial for both the service provider and merchant to properly educate themselves on the details.
A Go Fee Free program is a method of implementing a service fee to all customers who pay with electronic payments, such as credit cards or Electronic checks, while providing a discount to those who pay with cash. Cash Discount programs are legal in all 50 states per the Durbin Amendment (part of the 2010 Dodd-Frank Law), which states that businesses are permitted to offer a discount to customers as an incentive for paying with cash.
With Go Fee Free, customers who pay with cash or store-branded gift cards receive a discount. Customers who prefer to pay with a credit or debit card will see a non-cash discount adjustment on their receipt. Surcharging is similar in that your customers help cover credit card processing fees, but it’s only allowed on credit card transactions and is prohibited in six states (Colorado, Connecticut, Kansas, Maine, Massachusetts and Oklahoma).
It is also important to note that you are forbidden by Visa, MasterCard, and your processor’s rules to profit on a credit card transaction, which could happen if you accidentally charged more than you were charged by your processor. While many processors may offer a Cash Discount program, not all of them offer and utilize the compliant technology that is compatible with your terminals.
With our newly launched Go Fee Free Program, you can save big on credit card processing by shifting those costs to customers and offering discounts for anyone paying in cash.
1. We set you up with a terminal pre-programmed with the Go Fee Free program.
Our Cash Discount specialists are available to go over the program details and benefits with you.
2. We give you the required signage to insure you are in compliance.
So your customers know how easy it is to receive a discount, all they have to do is pay with cash!
3. A 4% service fee is auto added to receipts and waived for cash paying customers.
The transaction shows up as a line item on customer receipts and clearly details whether it was a discount or a fee. An example would be if you have a customer owe $100 for products or services you have sold them, then their receipt would show $100 for the sale and a $4.00 fee would be added to the transaction. The banking day you would receive the $100 in your account and the $4.00 would pay the fees and our cost for providing the service. You would get 100% of the sale price to keep!!!
4. Your business eliminates credit card fees and increases cash flow.
The credit card fees are passed along to card using customers, which means you keep all of your money.
5. We take the 4% service fee and pay your processing fees.
At the end of the month you will receive a bill that shows you owe nothing.