Controlling your monthly overhead is the great challenge all small businesses face, no matter what they do. It’s especially vital for retail businesses and those that provide direct service to the public, like auto repair shops and restaurants, because those expenses can add up quickly when you start looking at all the support services and utilities you need to meet your customers in their comfort zone. You’ve got energy expenses and telecommunications for starters, and that usually means both phone and internet.
Luckily, there are two great ways to cut your transaction processing costs to almost nothing, which can go a long way toward containing your overhead and keeping your profits on-track.
1. Start a Cash Discount Program
Cash discount credit card processing is legal in every state, and it allows you to accept credit cards with no monthly fee by passing the cost of the transaction on to your customers who use cards. This is done by pricing all the items in your store with their out the door price for card customers, then giving cash customers a discount that corresponds to the cost of your credit card processing on the transaction.
Your credit card processor will need to work with you to establish the program so you know how to set up your rebate function to correspond to the cost of processing, more or less. Companies with a well-calibrated program save about 95% on monthly charges, with some managing to reduce their costs to nothing.
Cash discount programs have a few rules to their application to meet federal guidelines for their use. All your signage needs to display the higher cost for card customers as the norm, with additional signage that makes the cash discount option clear so customers know they have a choice. You’ll also need to make sure you comply with any local state regulations pertaining to that signage or to limitations on the amount you can offer cash customers as a discount.
Working with the right provider streamlines that by putting you in touch with people who want to help you succeed and have the experience to help you with questions about these programs.
2. Move To a Processor With Equipment Deals
If you’ve been in the market for a Clover Flex for sale because you need an efficiently priced next-generation POS that offers you the flexibility to provide a cash discount program, you should look at the deals offered to new customers when they sign up for credit card processing. Often, you can get entry level systems like the Flex for use during your service agreement. It’s also pretty common to find deep discounts on premium POS setups with the ability to run multiple cashier interfaces through one central cash drawer.
If you’ve been saving for a Clover Station 2.0, this kind of deal could save you a lot of money. When it also puts you in touch with a processor who can support your new cash discount program, you’re set up to reduce your credit card transaction expenses to practically nothing.