How to Reduce Your Credit Card Processing Costs With a Cash Discount Program

A cash discount program can reduce your overall credit card processing expenses by transferring associated fees, via a service charge, to customers making purchases with cards.
March 18, 2019 2 minute read

Merchant Cashier with CustomerIf you run a business, you’re always on the hunt for ways to maximize your profits. One way to do so, of course, is to reduce business expenses—a task easier said than done. Some costs, such as those for supplies, employee wages and utilities, are simply unavoidable. Another necessity for most businesses is credit card processing, which enables customers to pay in the most convenient way possible. This doesn’t mean there aren't ways of reducing these associated costs, however.

A good credit card processor will provide highly competitive processing rates, with even more savings possible through a cash discount program.

This transfers credit card processing fees ordinarily paid by you, to customers making purchases with a card, via a service charge. Implementing such a program can reduce your credit card processing costs by as much as 90%.

How do you go about introducing such a program to reduce your costs?

1. Determine whether your business is right for a cash discount program.

Cash discounts are very versatile, but they work better for some types of business than others. These programs might make the most sense if your business:

  • Deals mostly in low-ticket sales.

  • Has an older customer base.

  • Is looking to remain competitive with its competition.

2. Research the right program.

To introduce a cash discount program, you’ll need to find a credit card processor that offers such an option. Not all are the same, though, so make sure your provider:

  • Can seamlessly introduce cash discount software into your current credit processing systems and equipment.

  • Offers a true cash discount program, rather than a surcharge program, which is not legal in all states.

  • Will not compel you to maintain the program if it's not the right fit.

No Cost Processing by MerchantPro Express (MPX) is a risk-free way of reducing your credit card processing costs by up to 90%. Our program is quick to set up, compatible with many POS systems, and can be canceled at any time.

3. Clearly express the cash discount to your customers.

Cash discounts are legal in all 50 states. They do, however, come with some safeguards to help customers make informed decisions about payment methods. According to the U.S. Federal Trade Commission (FTC), you must, “disclose the offer clearly and conspicuously,” for example. The simplest way to remain compliant with this regulation is to place an unobstructed sign where your customers make purchases.  

With the right credit card processor, introducing a cash discount program to reduce your credit card processing costs is simple and easy, and could save your business plenty. To learn more about MPX’s No Cost Processing cash discount program, Contact Us!

Topics: Merchant Processing

For additional information please call MerchantPro Express at 888-333-1374 or email

Leave a Comment

Is Your Business EMV-Compliant?
Is Your Business EMV-Compliant?