Duo Pricelist Can Benefit Businesses Of All Types
Top FAQ's
What is the cash discount program?
The Cash Discount Program is a way for you, as a merchant, to alleviate the costs of accepting credit cards.The Program encourages customers to pay with cash or check. If the customer opts to pay with a credit card, then the customer will pay a 4% service fee charge.
How does it work?
When a customer goes to pay for their services/goods, they wil lbe assessed a 4% service fee which is automatically calculated through the terminal. If the customer pays with cash or check, then the service fee is eliminated.
Do I have to do anything additional for this to work?
No,Payment Lynx will need to reprogram your existing terminal, or we can arrange for you to have a new terminal. The terminal will be pre-programmed to assess the service fee automatically. Anyone working the cash register will not be required to do anything extra on their end. Simply input the total to be charged.
How is it charged to the customer?
On the customers receipt they will see 3 line items. The subtotal, service fee, and total amount charges. For example, on a $100 sale, the receipt would look as follows:
Sub Total: $100.00
Service Fee/non cash adjustment: $4.00
Total Amount: $104.00
Is it legal to offer a Cash Discount?
Mitchell Katz, spokesman for the Federal Trade Commission, said May of 2011: The Dodd-Frank law prohibits a payment card network such as Visa “from inhibiting the ability of anyone to provide a discount for payment by cash, checks, debit cards, or credit cards,”. As a merchant, you only need to display correct signage to ensure the customer understands what they are being charged.
Is this the same thing as a surcharge? Aren’t surcharges illegal in certain states?
Surcharges are illegal in certain states. However, offering a cash discount is not the same thing. Visa and MasterCard use specific verbiage (reference section 5.11.12 of Rules and Regulations), that is taken into account when offering the Program. Your stated price now carries a 4% service fee on all items, and when someone pays with cash they are being offered a discount. This is not the same thing as implementing an additional fee for accepting a credit card.
Although this may seem like a technicality, all of this falls within the bylaws set by the credit card
brands themselves.
Won’t some of my customer be upset by this fee?
Some customers may be put off by the idea of paying a service fee. In that case, there is the option to pay with cash or check to avoid this fee. Customers are already familiar with paying for service fees in many industries: ATM’s, utility companies, taxes, etc. If you explain that the Cash Discount Program is a way for you to keep providing quality services and goods without increasing your overall prices, most consumers will understand. In a survey, 80% of respondents did no feel inconvenienced by paying this amount, which only equals $1.00 on every $25.00 spent.
What if I don’t like the Cash Discount Program?
No problem, if for any reason you would no longer like to participate in this program we can reprogram your terminal to resume normal Interchange Pricing.
Will this Program eliminate my fees all together?
You are only expected to pay a small flat service fee every month depening on your average ticket and processing volume.