SHARING Your Processing Costs with Your Customers

SHARING Your Processing Costs with Your Customers

Cash Discounting, Non-Cash Adjustments and Surcharging may seem a little daunting or confusing at first. Many people have misconceptions about how these programs work and if they are legal. 

Multiple states have varying laws about cash discounting, surcharging, non cash adjustment,  program fees.   We checked with several major processors, including  Clearent’s empower program, and North American Bank Cards  Edge program, to see what each state allowed. 

While the concept of charging customers for the convenience of using a credit card or offering a discount to customers who pay by cash is not new, there are opportunities for confusion if your employees aren’t trained or are not on board with the program.

We’ve found that how your employees speak about the program is key to your success. Think about any promotion you’ve ever wanted your employees to run or aspects of your business you want them to be knowledgeable about. If they are negative or unsure, it will fuel potential concerns from your customers. If they are positive and upbeat it will set the stage for success! The same principles apply to benefitting from a Cash Discount, Non-Cash Adjustment or Surcharging program.

If your business is in an industry where you regularly accept tips, you may find yourself with some extra questions about how these programs works for you. Keep these main facts in mind when figuring out how to stay compliant.

Most business are concerned that it will be poorly received by customers or hard to explain at the counter,  however our interviews of over 50 businesses employing these cost saving practices suggest its just not a problem.