If you're in the Payments Industry you've most likely heard the words 'Cash Discount'. This is where a merchant can decrease a price of their sale in exchange for a cash payment rather than a credit card payment. It's completely legal to provide a Cash Discount in the United States, where 'Surcharging' is actually illegal in a handful of US States. Surcharging is where you charge the customer a fee for using a credit card.
There are rules for providing a Cash Discount. As of January 27, 2013 several Card industry changes went into effect with regards to the credit card company’s federal class action litigation settlement. The settlement requires Visa and MasterCard to change some rules for merchants who accept their cards, including allowing merchants to “offer discounts to customers who pay with payment forms less expensive than Bank Debit cards”.
Clear and conspicuous signage is required by law to be displayed at the business entry point and at the point-of-sale to easily and accurately explain the discount program payment options – if a customer “chooses to pay with cash or check the service charge is discounted”.
The customer service fee or discounted amount must be present on any generated receipts from the transaction. Cash Discount compatible device software provides customer receipts that clearly outline: Base Cost, Cash Discount & Total Sale
Poynt Receipt with Cash Discount & without Cash Discount (MyBMR Application)
How does Cash Discount work on Poynt?
To start, you need to get a Poynt Terminal and download one of the two Cash Discount applications. If you can't download the application, feel free to contact firstname.lastname@example.org
It's best to be familiar with how the native Register Application works on Poynt. This is the primary application that hosts the merchants menu and also provides options for payment and check out.
Merchant or Processor sets up the fee inside the Cash Discount application (only up to 4%) within the settings tab.
Merchant provides the choice to pay by cash or credit. If the customer chooses cash, the selected cash discount is automatically applied to the total (like the receipt above).
There is live reporting for the merchant to see (1) Processing fees saved (2) Current service charge selected (3) Gross Sales (4) Service charge earned.
Video on how Cash Discount works with Poynt (CashDiscount Application)
Does the Cash Discount App work for both Credit and Pin/Debit?
It works with Credit Card & Pin/Debit Cards on Poynt, but does depend on the processor. When you do Cash Discounting the correct way, you're not Surcharging. You're adding a fee to every item/service and NOT adding a fee only when a credit card charge is made. The software applies the discount automatically. The Cash Discount team will be updating their website soon with what processors that are most eligible for Cash Discount.
Can you bypass the SVC code?
Yes, at the time of sale the merchant can bypass the SVC code.
More information? Email email@example.com
(This article was written and reposted with permission by Boomtown)