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Merchant services · Card fees

Why go “cash discount”

Also known as Customer Pays for Fees.

Card fees take a bite out of every sale. A cash discount program lets you keep that money. These four short chapters show what you pay now, what changes, and why so many small businesses are making the move.

  1. CH 1Your billThere is more on it than a percentage.
  2. CH 2The mathFrom $885 a month to $12, in an example.
  3. CH 3SuppliersThey already do this to you.
  4. CH 4Why nowCosts keep going up.
  5. NEXT STEPCompareSend us your statement for real numbers.

Move between chapters with ← → or the buttons above. Tap Listen in any chapter to have it read to you.

01 / 04

Look at your whole bill

Most owners only look at the rate. But you are not just paying a percentage.

  • The rate. A percentage of every card sale.
  • Per-transaction fees. A few cents every time a card is run, on big sales and small ones.
  • Monthly fees. Flat charges such as a statement fee, a PCI fee and a gateway fee. A gateway is the service that sends your card payments to the processor.
  • Cash discount saves you on all of it, not just the rate.
How it works: Think of a gas station. The sign shows two prices for the same gallon: the regular price, and a lower price if you pay cash. Nobody is surprised by it. Cash discount works the same way in your store.
What is on a statement
The rateA percentage of every card sale
Per-transaction feesCents on every card run
Monthly feesStatement, PCI, gateway
Your real costAll three added together
02 / 04

What you've been paying vs. what you'll pay

Here is an example. A shop takes $30,000 a month in card sales, across 600 transactions.

Before

  • Rate: 2.6% of $30,000 = $780
  • Per-transaction fees: 600 × $0.10 = $60
  • Monthly fees (statement, PCI, gateway): $45
  • Total: $885 a month, about 2.95% of card sales
  • Over a year: $10,620

After, with cash discount

  • Rate: $0
  • Per-transaction fees: $0
  • The handheld: $12 a month. That is all the cost.
  • Total: $12 a month, or $144 a year

What the example shop saves

  • Each month: $885 − $12 = $873 saved
  • Each year: $10,476 saved
These numbers are an example. Send us your own statement and we will show you a real before and after for your business.
Example shop: $30,000 a month, 600 transactions

Before

Rate, 2.6%$780
Per-transaction, 600 × $0.10$60
Monthly fees$45
Each month$885
Each year$10,620

After

Rate$0
Per-transaction$0
Handheld$12
Each month$12
Each year$144
The example shop saves$873 a month$10,476 a year
03 / 04

Your suppliers already do it

Think about what happens when you pay your own bills with a card.

  • Many of the suppliers, vendors and stores you buy from add a fee when you pay by card.
  • When you pay them with a card, they are pretty much doing cash discount on you.
  • So you are already paying for it, on your side of the counter.
  • Now you can do the same in your own business.
When you pay a supplier

You pay by card

A fee is added

You cover their cost of taking your card.

You pay by cash or check

No fee

You pay the price on the invoice.

04 / 04

Why now

A few years ago, nobody wanted to do this. That has changed.

  • Rent keeps going up.
  • Wages keep going up.
  • Inventory keeps going up.
  • Businesses need to protect their margins everywhere they can. Your margin is what is left after your costs.
  • Card fees are one cost you can do something about today.
Illustration, not real figures Rent Wages Inventory

Your costs go up. Your prices cannot always follow.

WRAP-UP

The short version

Four points to remember. For real numbers, send us your statement and we will build your own before and after.

Your whole billRate, per-transaction and monthly fees all count (chapter 1).
$873 a month savedThe example shop goes from $885 to $12 (chapter 2).
Already payingYour suppliers add card fees to you (chapter 3).
Costs keep risingProtect your margin where you can (chapter 4).

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