Inflation rates rose by 9.1 percent in June 2022, resulting in many businesses struggling to maintain steady profits. With Celero Choice, you can recoup some of your transaction costs through cash discounting and/or surcharging programs.
With prices at an all-time high, some consumers are choosing to stay home and limit their spending. This isn’t good news for business owners or consumers.
High inflation means businesses and customers need to make the most out of every transaction. Cash discounting and surcharging can help with that. Let’s discuss how they work and the benefits you’ll see as a merchant.
Benefits of Offering a Cash Discount
Over the past few years, credit card issuers have steadily increased the card holder rewards, which has prompted people to reach for their cards instead of cash when shopping. This may be great for the consumer, but for businesses, it means higher credit card processing costs.
Celero Choice gives your customers the option to pay a bill balance “as is” using a credit card or receive a discount on a payment made in cash. For any non-cash payments, a small service fee is added to the purchase cost.
With cash discounting, you let the customers help pay for the rising fees related to rewards cards. It’s perfect for merchants who frequently sell small ticket items, such as gas stations, coffee shops, and fast food restaurants. By encouraging customers to pay via cash, this program eliminates many processing fees altogether.
Surcharging Made Simple
Another effective way to pass the burden of credit card processing fees along to your customers is to add a surcharge to payments made by card.
The majority of American consumers – 58 percent according to a 2020 study from Statista – prefer to pay by debit or credit cards. Even with a cash discount, there are some people who will choose to pay via card.
While cash discounting applies a discount to bills paid in cash, a surcharge adds a small fee to the bills paid with credit or debit cards. This transfers the cost of processing a card payment from the merchant to the customer.
Easily Achieve Savings
Celero Choice benefits merchants while preserving choice for customers to select their ideal payment method. Surveys have shown that 80 percent of respondents said they wouldn’t think twice about paying a $1.00 fee on a $25.00 transaction for the convenience of using their credit card.
Celero makes it easy to set up cash discounting or surcharging at your business. We’ll handle the set-up, in-store signage, and employee training. All you have to do is sign up, go about your normally scheduled work, and start saving money.
These programs don’t completely eliminate monthly credit card processing fees, but they will significantly lower your bill. Many merchants that implement these programs see fees drop by hundreds of dollars each month.
Fight Inflation With Celero
Are you interested in learning more about cash discounting and surcharging? Contact us today for additional information and guidance on getting started.
