Would you offer a discount for a customer paying in cash?

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Laura C | 1 year, 9 months ago

Yes, I would offer a discount for a cash-pay customer. The cost per transaction on a merchant account (the account required to process credit and debit card transactions) can be quite high (mine always averaged between 3 and 8 percent per card) and you face the risk of the money being taken back if a customer processes a chargeback (where the customer complains to their credit card company about the transaction).

Getting the money upfront, without any fees? I would willing give a discount for customers who prefer to pay cash. I'd probably offer between a 5 and 10 percent discount, depending upon the size of the purchase. As the fees continue to climb, it wouldn't surprise me to see more merchants offer cash discount incentives.

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Alicia Rogers | 1 year, 9 months ago

I would offer customers a discount for cash. Most people use credit cards now and I lose a bit on those with the processing fees and you don’t really have the money right away. My grandmother was a businesswomen and would use the old expression, “A bird in the hand is worth two in the bush”. It always made perfect sense to me.

I can see many people preferring to use cash in the near future. With credit statements showing how long a payment customers will have right on it, I think it will discourage people from wanting to use credit so much.

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Christina McCarty | 1 year, 9 months ago

With many service providers and merchants, the option to accept credit cards and the time that it takes to accept checks for payment may be worth offering a discount in cash when you consider the costs that may be involved. There are equipment charges and fees that may be assessed when accepting electronic payments. There is also the chance that there may be a chargeback for fraudulent activity. In these cases, the discount for using cash vs. the cost and time involved may have been well worth it. Also, accepting checks is becoming increasingly risky due to the amount of bad checks that are being returned. Cash is a guaranteed form of payment. So saving a few dollars may be worth that for the customers a well.

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