What is the Best POS for Cash Discount? Here are 4 Tips to Help You Choose
Businesses are always looking for new ways to save extra money while providing convenience and ease of use. One way they can achieve this is through a cash discount. Cash Discounting is a pricing system that rewards customers who pay with cash by providing a discount specific to that payment method. Other forms of payment will continue to be charged the standard purchase rate. In doing this, merchants can retain more of the hard-earned revenue they otherwise would have lost due to various operating costs including processing fees.
For those retailers considering the implementation of such a system, we understand that it can be a challenge to determine the best POS for Cash Discount integration. That’s why we’ve compiled four tips to help you make the right decision for yourself.
Tip #1: Ensure the Provider Can Accommodate Cash Discount
First, we must begin with the fundamentals: can your provider accommodate a cash discount into their POS systems? To offer an alternative pricing structure for customers paying with cash, you need a POS solution that can automatically implement various pricing based on the customers mode of payment.
There is no cookie-cutter way of implementing this program. With many options in the market, it’s important to have a POS system that gives you the freedom to implement the program that’s best suitable for your clients. There are many POS systems that have a very limited function to this pricing method and some are not built to allow for this type of price structuring at all. It’s why you can’t settle for any point of sale solution, so you must ensure that your provider can offer you a POS for a customizable cash discount program.
Tip #2: Choose a Cash Discount POS that Knows Compliance
If you’re not familiar with the ins and outs of Cash Discount, it might be challenging to understand why the receipt needs to be structured in such a specific way. However, the reality of cash discounting is quite simple: retailers must comply with guidelines set forth on a legal level in addition to following the guidelines set forth by the card brand associations for merchants to properly execute discounts for cash-paying customers. In many states, you would be out of compliance if you charged credit card-paying customers more.
Ultimately, if your POS system can’t implement the program correctly, there can be a compliance issue. The cash discount should be easily visible on the receipt either as a subtotal or on an individual line item. It is best to present both a Cash and Credit price to your customers for clarity whether this is done on a menu or on the receipt before being paid for. It’s also important to note that a merchant is often not allowed to profit off credit card transactions, so please be sure to consult with your processing agent/company before implementing this program.
Your POS needs to accommodate these particular details, but your provider also needs to know that they can help you implement a compliant cash discount program. Because there are different levels of compliance, you want to partner with a POS who knows the payments industry and how to execute the programs that best benefit the end-user.
Tip #3: Determine if the Provider Values Your Bottom Line
We’ve already mentioned the importance of your provider knowing the rules and options available for merchants. Still, it’s equally—if not more—necessary to identify if the provider values your bottom line. Implementing a Cash Discount POS solves a specific problem: loss of revenue.
Since a Cash Discount program doesn’t directly benefit POS providers, some won’t bother to learn about the system or integrate it with their solutions. So instead, you must ask yourself this: does this POS provider care about me and my needs? Are they focused on how to keep retail customers happy? Do they care about the merchants that use their software, along with the partners who provide it?
Tip #4: The Best POS for Cash Discount is Feature-Rich and Versatile
When choosing a point of sale system, there are always a myriad of factors to consider. For example, Cash Discount is significant for merchants to reclaim lost revenue, but it is for naught if the POS system can’t provide more. The best point of sale systems are feature-rich, customizable to the needs of individual merchants, and offer an overall better customer experience.
You need to look for a point of sale software with the following:
- Easy-to-learn interfaces for quick employee training
- Mobile device capability to take orders and accept payments anywhere
- Loyalty and Gift Card capabilities
- Inventory Management built into the system
How Paradise POS Can Help
Not only do we have a robust, feature-rich POS system, but we also have a thorough understanding of the payments industry, specifically cash discounts. As a result, our system can quickly help you adopt and implement a compliant cash discount program.
Along with our partners, we’re knowledgeable about the other factors for implementing a compliant cash discount program, including considerations like on-site signage. So, are you looking to partner with a cash discount POS provider, someone with your best interest in mind? Contact us today to learn more and to schedule a live demo!