Cash Discounting in Payment Processing – 5 Reasons Why It Rules.

Cash discounting in payment processing is a method in which a merchant can offer a cash discount for customers who pay for their goods and services in cash or debit. It’s no secret that cash discounting is becoming more popular in the world of payment processing to offset rising costs to merchants. Unfortunately, many people still don’t understand the benefits of cash discounts, so we’ve compiled this blog to help you understand why it matters for business owners. In this post, we’ll talk about five reasons why cash discounting rules. If you’re interested in learning more about what this is and how it works, don’t hesitate to read on!

The Cost of Accepting Credit Cards

Credit cards may seem like a good idea, but they come with a cost. Credit card companies charge an average of 2 to 3 percent for every transaction, and that can add up quickly.

If you sell $1,000 worth of products or services and receive credit card payments, it will take $20 to $30 plus ancillary fees such as statement fees, transaction fees, PCI fees, quarterly or annual fees, etc to cover the costs associated with credit card processing and it just seems to be going up. Offsetting the cost of credit card fees to individual cardholders and offering discounts to customers who pay by cash or debit is a great way to keep more revenue to help with rising costs to your business and avoid having to pay costly credit card processing fees.

This is why we call it Zero Pay.

The Benefits of Cash Discounting for Businesses

Eliminate Credit Card Processing Fees

The biggest reason businesses switch over to a cash discounting program is because they can eliminate most – and in some cases all – of their credit card processing fees. With Zero Pay, the customers that pay with a credit card also pay for the credit card processing fees instead of the business owner. This is a huge saving for businesses that can then use these funds to expand operations, expand marketing efforts, or simply grow their savings.

Gives Your Customers More Choice

When you work with a cash discount program, you are essentially offering your customers two different options. Customers that pay with cash or debit will pay a lower price – hence the term “cash discount”. Customers that choose to pay with a credit card will pay the listed price (which is slightly higher) to cover the cost of processing on that transaction. Your customers will ultimately have more options. You’ll also have the benefit of attracting customers who like a bargain!

Keeps Your Profit Margins Constant

Traditional processing fees are charged as a percentage of every transaction plus transaction fees. This creates a lot of volatility and uncertainty for business owners looking to budget or plan ahead plus as the business grows so do the fees. Cash discounting eliminates this issue, so you’ll have a more consistent view of your profit margins and know what your fixed costs will be every month. No more surprises.

Simplifies Understanding the Merchant Statement

Cash discounting programs like Zero Pay, ultimately make the payment process more simplistic for all parties involved. Often business owners don’t have time to try to decipher their merchant statement and end up paying the monthly bill not feeling good about what they are paying. Due to the complicated merchant statements, merchants may feel that they are getting a better deal than they are actually receiving. Zero Pay simplifies the payment experience and restores peace of mind to business owners knowing they are getting the absolute best value for the service.

More Cash

From mobile payments to contactless payments – modern technology has increased the scope of payment methods. When customers pay with cash you receive that payment instantly. There’s no waiting around for the transaction to process. However, you never want to strip your customers of the ability to pay by credit, which is why the Cash Discount Program is the ideal solution for all parties involved and supports debit as well. So when a customer uses their AMEX card, it’s no longer an issue. Now that is peace of mind.

How to Qualify for Cash Discounting

If you want to offer cash discounting and want a simple solution, then these are four steps that will help you get started:

1) Speak with a reputable company in the payment processing space. Yes, they do exist! Make sure you work with someone who understands the program and has experience getting merchants up and running on cash discounting. How good of an experience a business has got this implemented will be determined by the person you choose to work with. Framework Business Solutions has a 12-year track record of being a trusted advisor for business owners and has direct, hands-on experience getting merchants successfully set up on Zero Pay in both Canada and the US. Click here to book a call.

2) Once you have had an initial conversation and based on your business needs to be selected the best product to support your business, the next step is to fill out an application with your required information (Legal Business Name, Business Address, Contact Info, etc.).

3) Review the terms and conditions for an account with your credit card processor. This is a great time to ask questions on anything you don’t understand or want clarity on. As a consumer, it is your responsibility to understand what you’re signing so this is the best time to ask questions so you understand the terms.

4) Accept or decline the terms and conditions (terms will vary depending on provider). If you’re feeling like you might want to go the traditional route and still reduce your payment processing costs, get a quote to see what the value is and go from there. Framework Business Solutions understands that not everyone will adopt cash discounting when they first become aware of it and might need some time to warm up to the idea. Zero Pay is not for everyone and we get that. Don’t let that stop you from getting the best value for your money. Give us a call at 1-877-226-2366 and we will be happy to discuss your business needs.

Why We Use It

The first reason why cash discounting is becoming more popular recently is due to rising costs and uncertainties affecting the market due to Covid and the related restrictions that have impacted revenue for business owners. The cost of doing business is rising and many owners are sharpening their pencils. Businesses that want to survive to see another day or years…. are looking at ways to reduce costs and increase revenue to keep the lights on and the doors open. There is no shame in that and makes good business sense. This will be a time where many business owners on the fence for one reason or another will exit their business. However, for the business owners that see a future for their business and want to ensure that they successfully navigate the unknowns, will be cleaning up unnecessary costs and the fees in their business, and payment processing is no exception. Offsetting the cost of accepting credit card processing fees is a no-brainer for the savvy businessperson.

One common question from business owners who are considering Zero Pay, is “What if my customers get upset?”. Studies show that 99% of consumers will not notice this small price increase if done correctly. We have found this to be true with the merchants we have put on Zero Pay. Our merchants have the option of going back to traditional cost-plus pricing and no one has requested to go back to their traditional plan once the program was implemented and they saw how valuable it was for their business. The apprehensions they once had about Zero Pay at the beginning and the concern that it may negatively impact their business was a non-issue once they implemented it and saw that their customers accepted it and business went on like usual.

Click here to book a call.


Cash discounting in payment processing is becoming more and more popular. It is one of the most cost-effective ways to process payments, and it provides businesses with a way to accept credit cards without eating into their profit margins.

Cash discounting in payment processing has many benefits, including the fact that it allows businesses to get free from having to worry about complicated fees that just seem to get higher every year. Zero Pay is one of the most cost-effective ways to accept credit cards without incurring the high costs of credit card processing.

To summarize, there are many reasons why cash discounting is one of the most cost-effective ways to process payments and provides businesses a way to accept credit cards with peace of mind and less hassle. If you have any questions about how cash discounting and our Zero Pay program can work for your business, contact us today at 1-877-226-2366 for a free consultation

or Click here to book a call.

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