EBOOK draft.pdf

TRUTH

ABOUT DUAL PRICING Is it legal? Is it best for my business?

How do I do it?

www.payproudly.com

Should I charge my customers a Credit Card Fee? The real truth about Cash Discount & Sur-charging no one wants you to know.

Advantages, Disadvantages & Is it Right For your Business

Can I charge my customers a credit card fee?

The option of passing on the credit card fee to customers is something that many businesses are considering – it’s a “hot topic” as businesses look for ways to be profitable while costs to do business continue to rise. Over the years, consumers have been incentivized to use credit cards with lucrative rewards, points, cash back, etc.. Why not use your credit card for groceries or school clothes if it's helping pay for the Florida vacation-right?

Credit card companies pay for these reward programs by charging business owners higher fees. Business owners are essentially paying for the rewards since Page-01

credit card companies recoup the cost of these rewards by increasing their fees. This leaves today’s business owners with a few tough choices to make: A. Reduce profits to cover steep costs of credit card fees B. Raise prices to cover the fees C. Pass along the credit fees to consumers D. Accept only cash.

What exactly is Cash Discount?

Cash discount is a form of credit card processing where the customer pays the credit card fee or receives a “cash discount” for not using a credit card. Cash discounts reduce the price of a product when customers pay with cash instead of cards. This isn't anything new, as gas stations have offered this program for many years–a credit price and discounted cash price.

Interestingly, in spite of the discount, most customers like Page-02

the convenience of using a credit card and are willing to pay the higher credit price.

Is cash discount legal?

Yes- Cash discount is legal when regulations and requirements of commercial payment processing are followed properly. It is NOT legal when these regulations are not known and therefore not followed. Unfortunately, many business owners unknowingly violate compliance by implementing their own version of a cash discount program. When enrolled in Cash Discount processing through Pay Proudly, full compliance is ensured. Our terminal and point-of sale system will automatically assess a percentage fee when a customer pays with their card. However, that fee is removed from the cost when the customer pays with cash instead.

Is there a way to try out Cash Discount?

Business owners can ease into using cash discount.

Depending on your specific business, Pay Proudly can set up a processing program that will automatically SPLIT the credit card fee with the customer. This is a great way to get familiar with the cash discount program by sharing the cost of using a credit card with your customer.

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Why isn't every business using Cash Discount?

Cash Discount adoption is definitely on the rise. More and more businesses are offering a cash discount program as an alternative to raising their prices, however, it may not be a good fit for everyone. There are some important things business owners should keep in mind when deciding whether to implement this kind of processing.

Advantages Reduce or Eliminate Steep Credit Card Fees: The primary benefit is the significant amount your business will save by eliminating or reducing credit card processing fees. The additional funds can be utilized for needed expansion, improvements, hiring more people, additional marketing, etc.

Encourages More Cash Payments: People prefer to pay with credit cards but these programs also incentivize them to use cash.

Discounts: Who doesn't love a discount? You are able to offer a discount to pay with cash – consumers always love a discount.

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Disadvantages Card Spend: Consumers spend more when paying by card and credit card usage increases in a slow economy.

Price Resistance: Some customers will want to pay by credit card to capture their rewards yet not pay the fee to use a card. This highlights the favorability of the cash discount programs.

At Pay Proudly, our Mission is to help remove the confusion around payment processing by bringing honest clarity to our merchants. Our team takes the time to know you, your business and develop the best payment processing or point of sale solutions for your unique business needs.

We welcome the opportunity to work with you to clarify your current rates, identify hidden rate increases, review how your rates compare to others in your industry and help you decide if a cash discount program is a good fit for you.

In addition to clarity, Pay Proudly’s MIssion rests squarely on Charity to our communities Approximately 10% of all fees collected are gifted to local charities on behalf of our merchants each quarter. -We are personally vested in your business success AND the success of our communities.

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Pay Proudly are honest processing experts, providing the best processing rates, popular Point-of Sale solutions, personal support and community funding contributions. Call us at (843) 707-6110 click here for a complimentary effective rate audit and comparison.

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