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What is Cash Discounting?
Cash Discounting allows you to offer a discount for cash payments from customers, in order to incentivize cash transactions.
As an example, let’s say that a product is priced at $50 and you have enabled a 3% cash discount:
- If the customer buys the item and chooses to pay via cash, they get a discount of $1.50, so they end up paying just $48.50.
- If the customer buys the item and chooses to pay via credit card, they pay the full $50 price.
This might be preferable to adding a credit card surcharge because customers might feel like they are not being penalized for using credit cards. In this case, you might want to increase all your base prices across the board by 3% to to help offset credit card processing fees.