Using credit cards to pay for items offers greater convenience and security. However, this method of making payments comes with at least one potential drawback. As a merchant, you may have had no choice but to tack on the cost of the processing fees that accepting plastic requires onto the prices you charge. That means that even low-rate credit card processing costs are borne unevenly, with cash-paying patrons shouldering the same proportion of the burden as those who receive rewards from their card companies for paying with their cards. So, what’s a business owner to do? Fortunately, Cash Discount Programs like Edge from North American Bancard are here to help you. 

How does Cash Discount work?

NAB’s Edge Program combines Cash Discount with Flat Rate Pricing so you can take advantage of one low rate for credit card payments, while also having the ability to offer a discount to non-card users. If the customer is using a credit or debit card, they will be charged a small extra percentage, usually three or four percent. A patron purchasing the same item with cash would not pay that small percentage fee.

Choose the right merchant services provider for your Cash Discount Program and there shouldn’t be any contracts or monthly fees. They should also provide you with any necessary payments software and promotional signage at no additional charge. 

How Cash Discount can benefit you.

Fair pricing makes sense for everyone, with particular advantages flowing to those paying with cash. As a merchant, you too will reap the rewards of cash discounting in several ways. You’ll protect your business from excess card fees. Meanwhile, you’re left with the ability to provide everyone with the choice to pay using their preferred method. Better still, you won’t have to raise your prices to potentially make the same profit on credit card payments as you do on cash payments.

Cash discounting guidelines.

There are important guidelines that you must follow if you decide to incorporate this payment solution into your business model.

  • You must post clear, correct signage informing customers about your Cash Discount Program,both at your entrances and in your checkout area(s).
  • All receipts should show the base amount of the transaction, the cash discount, and the total cost that was charged.
  • All items must show two prices, a cash price and a credit card price. 

This is not a surcharge imposed on consumers who use credit cards, something that is illegal in 10 states. Instead, it is a perfectly legal incentive to cash-paying buyers.

If you are tired of remitting credit card fees yourself, or are looking to offer a discount to customers paying with cash, a Cash Discount Program might be the perfect solution. Provide flexibility and payment choices to those who want the convenience of paying with credit cards, while offering a discount to cash customers at no additional cost to you. It just does not get any better (or fairer) than that.

Contact NAB today and see how easy it is to get the merchant services you deserve.


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