If you want to reduce your payment processing fees, consider implementing a surcharging or cash discount program as part of your merchant services. These programs are extremely popular with consumers, helping you build customer loyalty while reducing your operating costs.

Depending on your business and the surcharging or discount program you select, you can reduce your credit card transaction fees substantially. Merchant Card Advisors offers these easy-to-adopt programs to our customers without setup fees, so you can immediately start reaping the benefits and increasing profitability for your business.

Surcharge or Cash DiscountCredit Card Surcharging Programs

Surcharging refers to the practice of adding a fee to your base prices when customers choose to pay using a credit or debit card. You might hear this practice referred to as a credit transaction fee or service fee.

Although you have to follow the guidelines and rules established by the credit card issuers – particularly MasterCard and Visa – you can implement a surcharging program without jeopardizing your merchant account.

It is important to note that some states have implemented laws that prohibit surcharging. If you do business in one of these states, you can avoid running afoul of the law by implementing a cash discount program instead.

Cash Discount Programs

Surcharging involves adding a fee to your posted prices for customers paying with a credit card. With a cash discount program, you reduce your posted prices for those customers who choose to pay with cash.

Although this essentially achieves the same outcome as adding a transaction fee to credit card purchases, cash discount programs are permitted in all states. In addition, neither MasterCard nor Visa has any rules against offering cash discounts.

Implementing Surcharging & Cash Discounts

The benefits of surcharging and cash discount programs can be significant, especially for small businesses, startups and perceived high-risk industries. However, before you decide to implement a program, make sure you have all the information you need to make the right decisions.

Working with Merchant Card Advisors on your surcharging or discount-for-cash program helps ensure you get it right the first time. We work closely with our merchant account clients to evaluate their business model and determine what will resonate most with their customers. Based on your location, we can help ensure you’re compliant with any state and local laws that affect surcharge programs. Finally, we help ensure your compliance with the rules set forth by the credit card companies.

If you accept credit cards – or if you’re getting your merchant account set up so that you can take credit and debit card payments – a surcharging program could provide substantial benefits. Contact us today to learn more about how you can offset transaction and processing fees and increase customer loyalty with a credit card surcharging or cash discount program.