FREE Processing: Cash Discount
MG4SMB can eliminate up to 100% of your processing fees while rewarding your cash paying customers.
Eliminate ALL your processing fees
With our cash discount program, you never have to worry about processing fees.
100% legal and available in all 50 states
Pass up to 5% of processing fees to the customer
Businesses must have signage at the door and at checkout that clearly shows the credit price alongside the discounted price
The cash discount must be shown on the receipt
The offer of the cash discount must be clearly communicated to all customers before transactions
What is Cash Discount?
Cash discount is a program that allows businesses to provide a discount to customers who purchase a product or service with cash. Customers who purchase a product or service with a credit card will not receive the discount.
Key to Success
For the business to truly offset credit card processing fees, the business needs to raise the 'full price' of their products/services by as much as 4% (i.e. equal to the cash discount rate) at the onset of their program. That 4% increase is then used to offset nearly their credit card processing fees, including interchange rates.
Accept payments, offset fees, increase sales
Save hundreds per month on card transaction fees.
Increase average spend by 20% with credit versus cash transactions.
Reduce fraud risk with an EMV- and NFC-enabled terminal.
Grow revenue with an all-in-one digital platform.
Keep your customers happy by offering a discount on cash purchases.
How it works
MG4SMB equips you with a cutting-edge payment terminal that automatically offers a discount to cash-paying customers.
We help you adjust your regular pricing to offset processing costs.
We help you communicate your pricing to customers, making your program compliant and your customers happy.
Cash Discount vs. Surcharge
A cash discount is when you post credit card prices and offer a discount on that price for customers who pay with cash. A surcharge is when you post cash prices and charge an additional fee on top of that price for customers who pay with a card.
In the first situation, a customer pays less than the listed price. In the second case, they pay more than the listed price. If you charge more at the register than the listed price, it is a surcharge, regardless of what processors call it. Even if a processor tells you that you’re simply adding a “service fee” or a “non-cash adjustment” it is still a surcharge.
According to Visa, “A discount for cash is different from a surcharge. The rule states the posted price must be for cards, however, merchants can provide a lower price for cash acceptance. Discounts for cash are allowed by Visa. However, merchants are not permitted to post a price for cash, and then charge a higher price for cards.”
While it may sound like a minor difference, it’s actually very important in terms of legality and compliance with card brand rules. Getting it wrong means risking fines or having your merchant account shut down.
Is cash discounting legal?
YES! Unlike surcharging, cash discounting is legal in all 50 states.
The 2010 Dodd-Frank Law, in the Durbin Amendment, legally permits business to provide a discount as an incentive to use a method of payment other than credit cards, including cash.
A discount, as defined in the Durbin Amendment, is “a reduction made from the price that customers are informed is the regular price... [and] does not include any means of increasing the price that customers are informed is the regular price.”
Is this like a surcharge?
NO! A surcharge is a small fee added to a customer’s purchase cost for the “privilege” of using a credit card, which can then be used to cover the cost of credit card processing.
Surcharging is still prohibited in some states
Credit card brands (Visa, Mastercard, Discover, American Express, etc.) either prohibit surcharges or require that merchants notify them when implementing surcharges, so as to protect their own reputation
Customers may not like being charged extra to use a card, whereas getting a discount for using cash is a positive incentive
How MG4SMB Benefits Businesses
Our cash discount program can help businesses save hundreds or thousands of dollars every month, depending on their monthly processing volume and transaction count.
Top 3 Reasons Businesses Enroll:
Reduce existing credit card processing fees
Credit card processing fees range from 1.3% to 3.4% plus the payment processor’s cut
A typical liquor store processing 46 transactions a day at an average ticket price of $23 would pay $984 in monthly credit card fees if processing with a competitor at a rate of 2.6% + 10c
A cash discount program done right can save that liquor store merchant nearly $1,000 each month
2. Upgrade from a cash-only business
44% of people carry $20 or less, and 9% of people don't carry cash at all
Credit transactions are 120% higher than cash transactions, on average
56% of small businesses still do not accept EMV chip cards, despite the fact that being EMV-compliant can decrease fraud by as much as 60%
3. Grow their business with a digital platform
Have a Virtual Terminal available to do transactions from any device, anywhere, anytime
Ability to send digital invoices and collect your money faster
Option to have recurring billing for regular paying customers or vendors
Think of it this way...
✅ Do you own a small business?
✅ Do you accept credit card payments?
❌ Do you enjoy paying processing fees?
🛑 STOP PAYING PROCESSING FEES!
💰Reward yourself by keeping your hard earned money!
Processing fees can be some of the highest expenses for small businesses. You accept credit cards as a convenience to your customers, yet your customers are the ones being rewarded with sky miles while you pay their processing fees! Wait? What? Have you ever asked yourself why you pay for your customers vacations?!
What businesses are ideal for cash discount?
A cash discount program is most ideal for businesses with low ticket sales, since you are passing your merchant processing fees to your customer. Here are some examples:
