Cash discounting credit card processing is a form of payment that doesn’t charge the business for credit card transactions. Credit card processing fees eat into an enterprise’s bottom line, which is why many small businesses choose payment processing platforms with zero-fee options.
Fees are passed onto the cardholder at businesses with cash discount credit card processing. There is a slight variation in costs for payments made with a card versus those made with cash. The business offers customers a choice between a slightly higher price for the convenience of paying with a card or paying at the original price with cash.
Another way of structuring zero-fee credit card processing is to charge customers the original price when they pay with a card and offer a cash discount program for non-cash payments.
It gets a little more complicated when shoppers use debit cards. Fees for debit card payments may be eliminated depending on if you’re using a surcharge or cash discount program. Cash discounts will eliminate processing fees for debit payments, but surcharges will not.