Frequently Asked Questions

Q: What is a cash discount?

A: A cash discount is when a business provides an incentive to customers to pay with cash. This is often done to lower the expense associated with taking credit card payments.

Q: How does a cash discount program work?

A: When setting the price you charge your customers for a product or service, most businesses include all their costs associated in selling that product or service. Often times, businesses forget to include the expense of taking credit cards for payment. Through a cash discount program, businesses include all of their costs (including the cost of processing credit cards) in the price of all their products or services. When a customer uses their credit card, the customer covers the cost of paying with a credit card as it’s included in the price of the product. When a customer pays with cash, check, debit or EBT card, they receive a discount and pay the cash price of that item. Essentially, everyone pays the same price. The only difference is that cash paying customers get a discount.

Q: Do I need to put up any signage to inform my customers?

A: Yes. By choosing to offer a discount to customers paying with cash you must post signage so all customers notified of their options.

Q: How do I add my credit card processing fees into the pricing of my products or services?

A: Most businesses take the average cost to process credit card (4%) and apply that to the current cost of their products or services. However, the application will automatically adjust all pricing loaded into the Clover system with a single click of a button.

Q: Will this eliminate my month credit card processing bill?

A: Every processing account is different so the results vary. However, participating in a cash discount program can lower or almost eliminate your monthly credit card processing fees. Your credit card processing bill won’t go away, but you would have collected the majority of the fees associated with your credit card processing in each credit card transaction.

Q: What happens if I add more items into my Clover inventory after the credit card processing fees have already been incorporated into pricing?

A: The Cash Discount application is smart. It can recognize when a new item is added and will prompt you to incorporate the credit card processing fees on that specific item or service when adding it.

Q: Can I apply a discount, like a student, military, or senior discount, to a transaction and still apply a cash discount?

A: Yes you can apply a discount, such as a military or student discount, to the transaction and then apply the cash discount.

Q: I thought surcharging had a lot of laws about it?

A: Surcharging has a lot of regulations surrounding it and is not allowed across all United States. A cash discount program is not a surcharge. You are simply accounting for all of your expenses and adding those into the price your customers pay. When someone pays with cash you are providing them with a discount as a thank you for paying cash and lowering your cost.

Q: How do I add a new item to my inventory?

A: Follow the normal steps to add a new item to your inventory/menu. When inputting the price of that item, you should input the credit price. If you sell an item for $10.00, simply multiply $10.00 x 1.04 which gives you $10.40. Input $10.40 into your inventory.