Thank You For Visiting, And Welcome!

Thank you for stopping by today to learn more about Cash Discounting, also called Dual Pricing, or Differential Pricing.  While a deeper understanding of the industry may be beneficial, all you really need to know is basic English and math.  So, let’s get our feet wet by defining two terms:

First, Cash Discounting?

Cash Discounting is the offer to reduce the amount a customer owes – generally as a percentage – if the customer pays in cash.

The second term is Effective Rate:

Your Effective Rate is the total amount you were charged for your processing, divided by the total amount you processed.

So, if you processed $10,000 last month, and paid a total of $300 in fees, your Effective Rate is $300 ÷ $10,000 = 0.03, or 3%, and will differ based on a number of variables.  For our discussion, we will use an Effective rate of 2.5%.

What merchant was ever walking around their restaurant or store, and said spontaneously, “Ya know what?  My cash customers are paying 4% too much, and they deserve a break!”  No-one, ever.  Never.  Not once.  So before this program being pushed, this did not seem to be a problem at all.

But, if it is, a merchant can implement Cash Discounting right this very moment.  Simply allow your customers to shop as they would normally, and then. when they go to pay, you simply ask, “Will that be cash or charge?”  About 81% of the time, they will hand you their card.  If they instead go to hand you cash, you stop them, shout, “Hooray!”, and tell them they only owe you 96%.  So do that.  Right now.

But first, ask yourself one question: why?  Why on earth would you want to give someone 4% off just because they paid you in cash?  Does that make any business sense?  4% off the top, just to get a little cashola?  Even the vaunted “gas station” example is a nickel on a $3.13 gallon of gas.  Do you know what that works out to be?  1.59%.  Not 3.99%, 1.59!

Did this ever come to you as a good idea BEFORE some salesperson came in and pitched you their new money-saving program?!  Probably not.  Why?  Because it’s stupid, or at least doesn’t make any business sense – that’s why!  And, as a customer, it is simply not enough of an incentive to run to the ATM, just to save, what, 4%?

So I don’t know why you would want to do that, but it’s your call, and you can do that today, without any other changes!  But, that is not what is being pitched.  What’s being peddled is NOT Cash Discounting, and this is the part you should be aware of, and object to.

• Zero Cost Credit Card Processing
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• How to Eliminate Credit Card Processing Fees
• Businesses can Accept Credit Cards for 0%
• How Do You Get Rid of Credit Card Processing Fees?
• What Could You Do With Extra Cash Every Year?
• Let’s go on a journey and explore what this means for your business, how much you’ll end up paying over time, and what you can do to stop the bleeding and enjoy FREE credit card processing.
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• By eliminating all credit card costs, you get to keep 100% of your revenue every time a customer pays with credit.

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“The customer pays for using their card.”

Really?

If the money is coming out of YOUR account, then YOU are the one paying the bill.

Here’s how it works:

Before

Customer  Merchant  Processor

After

Customer  Merchant  Processor

Before implementing this program, who was getting the processing bill?  How much was it?

Now that the customer is supposedly paying your processing fees, who is getting the processing bill?  Them?  No, it’s still you.  And now how much is it now?

Look at your before and after bills.

If you’re supposed to be saving money, should your new Effective Rate be higher or lower?

Lower, right?

Well, is it?

So ask yourself, if you are supposedly “saving” money, why is your bill for the amount YOU pay go up?

“This way you don’t have to raise your prices!”

Let’s get this straight: Cash Discounting is being pitched as an alternative to raising your prices.

But the very first thing we’re going to do is… raise all your prices by 4%?

What is the difference between these two scenarios?!

Somehow, in this scenario, you have to first increase all your prices by ~4%, then increase your Effective Rate by the same ~4%, and then and only then, can you offer any discount, and then only to your cash-paying customers.

Doesn’t this whole thing seem like a rather cockamamie/complicated/convoluted way to offer a discount to your cash-paying customers?

So ask yourself, why do we need a complicated and convoluted program to basically accomplish the same thing?

Really good question!

And the answer is you don’t, do you!

Regardless, you’re convinced that this cockamamie scheme somehow makes sense.

Then let’s look at it from your customer’s point of view, say on a $100 sale.

Previously, they charged $100, you got $97.50, and the processor got $2.50.

But now you say, “No!  I want $100!”

Well, it’s real simple, take that price tag, scratch off that old price of $100, and write in the new price of $102.56.

Then, after paying your processing fees, you’re get your $100.00.

Done.

Instead, now you have to put all kinds of signage around the store, maybe change all your price tags to have two prices for each item, check with your lawyer to make sure you are legally compliant, notify your payment processor, and reprogram your POS system.

If you are a cash paying customer, and get the whopping 4% “discount”, is that really enough to woo you, running out the store, clicking your heels?

Probably not.

But, if you are the vast majority – who like to use their card – how do you feel that you are being singled out to pay MORE?!

Just for a minute, take off your merchant hat, and put on your consumer hat.

Do you usually pay with cash or card?

Did you ever feel like you wish you could pay 4% more just to use your card?

Would a 4% “discount” make you carry or go get cash?

How do you like being hit with nuisance fees?

Good?

Do you like paying bullshit fees?

No.

Doesn’t this seem like a bullshit fee?

So what makes you think your customers don’t feel the same exact way when they are in your business?

Now salespeople say that most customers don’t complain.

Do you know that studies show that 92% - 96% of the time, dissatisfied customers don’t complain?

So the odds are that 92% - 96% of them will never say anything.

But 91% of them also won’t return.

How to Win Customers and Keep Them for Life, Revised Edition

By Michael LeBoeuf

Should Retailers Charge Customers Credit Card Fees?

https://youtu.be/ys01Iuu25-M?si=E7Up4jgl4_oNte84

You, yourself, do you always complain?

But what do you do when you’re not happy about a business practice you don’t like?

That’s right, they may not complain, but they also may not return!

Either way, does that mean they like it?

Absolutely not.

Isn’t part of your job keeping your customer happy?

Well, what part of this would make them “happy”?

If no one is saving any money, and I run the risk of alienating my customers, what should I do?

If you haven’t switched to Cash “Discounting”, it’s real easy, here are your options:

1) Do nothing.

2) Do what you’ve always done: make sure your prices cover your costs (Cost Of Goods Sold (COGS)) – including payment processing – and if they need to be raised, raise them accordingly.

That’s it.

Now, if you’ve already switched over, then just switch to someone offering Interchange+Plus pricing1, and you can even leave your prices 3.99% higher.

Assuming your new Effective Rate is less than that, you will enjoy an immediate windfall of the difference dropping as profit to your bottom line.

You’re welcome!

Enjoy!

In all fairness, do not use the same processor that got you into this mess – they already profited handsomely by “saving” you money.

1 - Before switching, absolutely make sure your contract does not include any penalties for cancellation, like an Early Termination Fee (ETF), or Liquidated Damages.  If you have any questions or concerns, just send your paperwork to Help@DoNotCash.DIscount.

Armed with this information, you now know the facts and the truth.

So if you bought in to the hype, should you feel guilty?

Absolutely not.

The industry’s pitch has been refined and honed, and sounds oh so-o-o damn good.

I’ve listened to them, and even I had to double-check the math to dissuade myself from falling for it.

They are presented very aggressively and powerfully, and the arguments are quite compelling and persuasive, with huge promises.

If only the math would support the claims!

And they’re being pitched to a vulnerable audience who’s been getting squeezed and beat up a lot by the economy, competition, and compounded recently by Covid, supply chain BS, and inflation.

If someone comes in, pitching this program, ask them the following questions:

Why does my Effective Rate need to be increased in order for me to LOWER my costs of accepting cards?

Is there any reason why I can’t implement Cash Discounting right now without changing processors?

What is the difference between this program and just raising my prices by my Effective Rate?

From the consumer’s point of view, isn’t paying the processing fees just the same the same as raising my prices by the same amount?

How much more does the processor make by implementing this program over, say, traditional Interchange+Plus pricing?

How can you be saving me money at the same time the processor is charging and making MORE money?

If they are suddenly willing to provide “free” equipment, whilst claiming to save me money, where does the money to pay for it come from?

Questions

Do you pay additional Sales Tax on the inflated pricing?  Of course you do.  Your Sales Tax rate just went from 6% to 6.24%.

If you are okay with “Cash Discounting”, can I switch you over to me, and I will charge your customers 6%, and offer an even bigger “discount”?  No?  Why not?

If it’s such a great idea, why are some states banning it?

If it’s such a great idea, why aren’t the big guys doing it?

So why exactly are we penalizing the vast majority of your customers who choose and prefer to pay using their cards?!

Lessons For Today:

Reality:

Should you suddenly feel the urge to offer cash-paying customers a discount, go ahead.  It makes absolutely no sense, but go ahead, it’s your money.  BUT, you do not need to engage in some cockamamie scheme in order to do it.  You can do it, all by yourself, starting today.

You are always the one playing the processor.  The customer is always the one paying you.

You cannot “save” money by paying more for something than you used to pay.  4% is always greater than 2.5%.  Yesterday, today, tomorrow – math is math (4% > 2.5%).

Payment processors, and their salespeople, make a LOT more money (profit) off of “Cash Discounting”, creating a significant incentive to convince you that their claims are true, or they may actually believe them themselves.  Beware, they have honed their presentation to be compelling and convincing.  They also may be high pressure.

Recommendations:

If you have not switched to “Cash Discounting”:

 Don’t.  It doesn’t save or make you any money.  In fact, it costs you and the customer more.

If you already bit the apple, and switched to “Cash “Discounting”:

But understand you made a mistake:

Forgive yourself, then switch to another processor, preferably offering Interchange+Plus pricing.1

But still believe the hype:

You made an emotional decision, which is more resistant, so you may have to revisit this later.  It’s your money.  If you want to pay more for your processing, that is your prerogative.  (But you are paying more, not less.)

Eliminate

e·lim·i·nate (/əˈliməˌnāt/)

verb

• completely remove or get rid of (something).

"a policy that would eliminate inflation"

Equivocate

e·quiv·o·cate (/əˈkwivəˌkāt/)

verb

• use ambiguous language so as to conceal the truth or avoid committing oneself.

"“Not that we are aware of,” she equivocated"

Esoteric

es·o·ter·ic (/ˌesəˈterik/)

adjective

• intended for or likely to be understood by only a small number of people with a specialized knowledge or interest.

"esoteric philosophical debates"

Semantics

se·man·tics (/səˈman(t)iks/)

noun: semantics; noun: logical semantics; noun: lexical semantics

plural noun: semantics

• the branch of linguistics and logic concerned with meaning. There are a number of branches and subbranches of semantics, including formal semantics, which studies the logical aspects of meaning, such as sense, reference, implication, and logical form, lexical semantics, which studies word meanings and word relations, and conceptual semantics, which studies the cognitive structure of meaning.

• the meaning of a word, phrase, sentence, or text.

"such quibbling over semantics may seem petty stuff"

Shenanigans

she·nan·i·gans (/SHəˈnanəɡənz/)

nounINFORMAL

• secret or dishonest activity or maneuvering.

"widespread financial shenanigans had ruined the fortunes of many"

• silly or high-spirited behavior; mischief.

Shoot The Messenger

shoot the messenger

phrase of messenger

• treat the bearer of bad news as if they were to blame for it.

"I was only reporting - no point in shooting the messenger"

Sophistry

soph·ist·ry (/ˈsäfəstrē,ˈsōfəstrē/)

noun

• the use of fallacious arguments, especially with the intention of deceiving.

"trying to argue that I had benefited in any way from the disaster was pure sophistry"

• a fallacious argument.

2 Big Problems with Cash Discounting. Have a Better Set-up and Don’t Get Robbed!*
(admits it’s a rip-off for the consumer)

https://youtu.be/G3qW_CZn828?si=QeLY5jml3gu7cYKp

3 Compliant Cash Discounting Programs

https://youtu.be/CosSCsb_tf0?si=UpGAvB8p2IQA1SdH

3 Keys to Compliant Dual Pricing and Surcharging (And Visa's Shift)*

https://youtu.be/fpNKDsM3_jk?si=1tU9Af0VkuniVtZg

5 Market Stages of the Cash Discount Program

https://youtu.be/tqvI7Ox5iZw?si=GfUKocIuC6VNTOpg

Cash Discount 2.0*

https://youtu.be/bWIxXv-tOYM?si=D17h5ac_xP35TNwv

Cash Discount 2.0 (The New Approach)

https://youtu.be/l3lC4C6Lbec?si=OPT66ZofZUq_mrvN

Cash Discount Close

https://youtu.be/r91SyItJzHo?si=kcOiVw2846xo3fZR

Cash Discount Program*

https://youtu.be/q3fmslIZcLw?si=xNpzTpcxa2TfxXpo

Cash Discount Program Explained*

https://youtu.be/Wj6aPrVfVrA?si=yGXtipHnTZdgewKo

Cash Discount Program - LIVE Rebuttals Call With Joe Wagner (EZ Pay)*

https://youtu.be/ZtcxByFgZKk?si=06ptIbTtKKczrvL9

Cash Discount Program Sales Training - "Why People Switch"*

https://youtu.be/e7d_LQfyCIE?si=8ucOFXuLB5US2MqS

Cash Discount Program vs Merchant Account Surcharge vs Convenience Fee - What is the difference

https://youtu.be/8AN9iAR6uws?si=RLZxSu8tn4OetK5o

Cash Discounting - The Opening Pitch and How to Sell It

https://youtu.be/kVM-jVL4WCM?si=aOErN3gNKWYAoCp1

Dual Pricing and the Visa Surcharge Cap (live event)

https://youtu.be/QHuHMFnL-jU?si=7LWMyyvYTO-iWGka

Dual Pricing is Growing (New Agent Poll)

https://youtu.be/ek0eqGLzWto?si=n9zAtY2RjXF8jIKm

Durbin Amendment Explained (Dual Pricing & Cash Discounting)*

https://youtu.be/cFLPmKwDtxA?si=SMudY5oD7umtqEcg

Get More Prospects By Doing This (Cash Discount Program Sales)

https://youtu.be/lxWHwolxnCw?si=6DiyCNK90c2PibX8

How Much Can You Earn - Cash Discount Program

https://youtu.be/olETwvsUkIQ?si=Zw5rtOr0YgLTEpMu

How Much Can You Make Selling Cash Discounting*
(includes equipment lease)

https://youtu.be/1dO-1-9Ka0k?si=f7ysItIPyXXEL2uG

How the Cash Discount Program Works

https://youtu.be/81tAw0Al6N0?si=V1Nk2dq1OopF_uJV

How to ELIMINATE Credit Card Fees! | Introducing Cash Discount

https://youtu.be/wWd9XU0kHO8?si=SPR03FmvGhtocG2U

How To Explain The Cash Discount Program

https://youtu.be/KRZuPsngOLw?si=To5b5i9FZf08ujKn

How To Overcome Merchant Sales Objections (Live Meeting)

https://youtu.be/le1xS1TlUOI?si=BMJkCS63uQGPietB

How to Overcome Objections to Cash Discounting?*

https://youtu.be/qHGbGr3nnRA?si=jsiXw7r6DZw74uXb

How To Pitch Dual Pricing & Cash Discount Program

https://youtu.be/tgxPcd70hpA?si=OeK_0S6uUBAIgJ-Y

How To Sell cash Discount Program -Attributes of Producers*

https://youtu.be/d4u-BNubHUw?si=INmwHtKBb6w5Muja

How to Sell Cash Discount Program - Training Video

https://youtu.be/0z8ZW_sR1CE?si=iaTm5U52CGzP_u-0

How to Sell Cash Discounting*
(admits he doesn’t support Cash Discounting)

https://youtu.be/z9W4DEkbEv4?si=njh3aUfEiyD7NFNe

How to Sell Dual Pricing

https://youtu.be/3bPRCy508Lc?si=PyNbTvR_ngYzth57

How you should sell Cash Discount ?*

https://youtu.be/pHogJfXCZvY?si=JnDJ27PUgj8J0CjY

Leasing Terminals with Cash Discounting - Good or Bad?

https://youtu.be/AcoKdB0oClI?si=yhFUKpbpxXPTqul6

Merchant Account Cash Discount Program Sign, How it works, Pricing, Compliance, How to use it

https://youtu.be/IAMp4TAAuXc?si=47R8PxqG36HZt3X2

Prospecting Pitch-Cash Discount*

https://youtu.be/TqPQjowQ744?si=PoXfZtpvYoet1AFZ

Sell Monster Merchants on Cash Discounting

https://youtu.be/b9oxfUgIN8U?si=Y9EULghhkGya_Ldh

Selling Cash Discount Program - How Hard To Be Successful (2018)

https://youtu.be/CnN_EgkqIuI?si=ciXEUuw_Yn4Tnw1B

Selling Cash Discount - How Will My Customers React To The 4%

https://youtu.be/VWSpegHUARE?si=d8TyDAqtJMYQsiR8

Selling Cash-Discount/Surcharge @ 4%*
(If I could sell it at 8%, I would)

https://youtu.be/mN6ppmGGZEk?si=O1t7B82zy-zf95nX

Slice Credit Card Processing Fees Down To Zero

https://youtu.be/QvWeTQAYRds?si=wjQa_gWip8VNBsOA

Should a Business Try Cash Discounting or Surcharging?*

https://youtu.be/PddBSi8GfiI?si=6vN8ULoRNGwTkA0p

Should I pass the credit card processing fees on to my clients?

https://youtu.be/4VVGR6bC9h4?si=xPUSHKOLK7qOWZrF

Should Retailers Charge Customers Credit Card Fees?

https://youtu.be/ys01Iuu25-M?si=jgcdjdRrHIyU6e9k

Should You Be Charged a Fee for Using Credit Cards?

https://youtu.be/k-R_ipxjjHk?si=dGE_MZWUIrlRNP59

Should You Transfer Credit Card Fees to the Guests?*

https://youtu.be/qxJjR2Ie0Q0?si=zbEVhRhpS0tNizGA

Slice Credit Card Processing Fees Down To Zero

https://youtu.be/QvWeTQAYRds?si=Ca5Qn4CYXZVMl8lw

STOP End of Month Billing for Cash Discounting*

https://youtu.be/nX6AM4g1kzQ?si=GD29N1-bROekF2n8

Surcharging and Cash Discounting, What's the Difference?

https://youtu.be/IFW90pe9HyI?si=N4uaKzr4O5iCs5Gh

The Best Businesses for the Cash Discount Program*

https://youtu.be/bfqR97QDFn4?si=wioPhYO_O-xld1Wb

The Cash Discounting Trap*

https://youtu.be/7WPBD8Q5Pks?si=zS2evodINFBmwrzX

The Future Of Cash Discount Program*

https://youtu.be/JdesIcUDKOo?si=612dvLy-zV4BHs7M

The Only Objection Selling The Cash Discount Program (Merchant Sales Training)*

https://youtu.be/W09oGdRizcc?si=8fjD2RUq1SLGstUC

The right effort and task to sell Cash Discount Program (EZ)

https://youtu.be/4iYXNHKnIcg?si=hQNa9LHDWP4_XsGx

Try Honesty; It Works - Cash Discounting Update*

https://youtu.be/oyS-1nc6DFs?si=xpS2Q9TDRtiGFaUo

Visa’s New Surcharge Cap and the Dual Pricing Challenge

https://youtu.be/eI7ZlI4d69o?si=thUNtOGKROZP8vDV

What is Cash Discount Pricing?

https://youtu.be/wI8mCzEJ6X4?si=69mYfslhLmX3pWph

What is a Cash Discount Program?*

https://youtu.be/conrrC1BglQ?si=08UPAWu5d4lF0G6g

What is Cash Discounting?

https://youtu.be/ae4q8yxUtBg?si=LAvj6LJrcsMr27rC

What is Dual Pricing? | Payment Insights

https://youtu.be/ZRmKamGyTPc?si=knF5kLatEKnBChjQ

Who Pays Sales Tax with Cash Discounting?*

https://youtu.be/yxhftU7jTrI?si=kUoeNkIWiLap5Kwi

ZERO Fee Processing: No Fee Credit Card Processing | What You Need To Know

https://youtu.be/9ldQhQgiuEY?si=ntc1-qNo-JtU9SMm