Summary

Cash Discounting/Dual Pricing is where the merchant offers a discount to customers who pay with cash instead of cards, effectively passing the processing fee to card-paying customers. Essentially, the merchant sets a standard price for goods or services that includes the card processing fee. Customers paying with cash receive a discount equivalent to the processing fee, reducing the price they pay.

Availability

Processor

Benefits

With Cash Discounting, the benefits are pretty obvious which is that the merchant doesn’t pay any fees and instead passes those costs onto the shopper.

• The only challenge is that many consumers are cost-conscious and may go elsewhere if the costs are lower. Baking in the processing fees often means the price is slightly higher than they may be elsewhere. With that said, there are some notable benefits for merchants on this pricing model:
  • Cost Savings: Merchants can offset processing fees by passing costs to customers who pay with cards, effectively reducing or eliminating their processing costs.
  • Simplicity in Pricing: Merchants benefit from a straightforward pricing strategy where the discount is clearly communicated to customers.

Fee and Rate Locations

Their current rates can be seen under the ‘Transactions Rate’ section in the Profile page of merchants that have been set up to utilize Cash Discounting. The Profile page can be accessed under the ‘Account’ drop down in the payment portal for any selected merchant.

For Cash Discount merchants, processing fees are taken out of each transaction before they’re deposited. This is industry standard for flat rate so any merchants previously on this pricing model would be used to it working this way. Since the fees are paid by the customer at the time of sale, this cannot be changed.

For merchants who would like to see a breakdown of the fees they paid, it is visible on the Payouts report 48 hours after the transaction date by clicking on the drop down arrow to the left of the date.

<aside> 💡 Note: The Fees column on the Payout Report is replaced with ‘Non-Cash Adj’. Since the shopper pays this cost that means the merchant doesn’t pay any fees.

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