C;5SH DISCOUNT PROGRAM In a world of sameness, we're giving you o tions.
Cash Discount Program The Cash Discount Program was created to offer merchants an alternative to standard • credit card processing. Allows the merchant to share or pass on credit card fees to their customers in the form of a • customer service fee – reducing credit card fees by 50-90% This transparent and innovative new technology is setting the precedent for the future of • payments.
A b o u t The Program 2. This fee is How does it work? applied to each sale made on a 1. A small customer merchant’s terminal. 3. The fee is service fee is assessed on all customer transactions. eliminated if the customer pays with cash or in-store gift card. 5. Each service fee collected goes toward that 4. The software month’s credit card processing fees. automatically determines the service fee and discount amounts. CASH CARD $.59 $.59
A b o u t The Program
C a sh D isc o u n t Le g a litie s This is a CASH DISCOUNT PROGRAM NOT a surcharge program THE DIFFERENCES – Surcharges vs a Cash Discount A " surcharge " occurs when a merchant increases the price for credit card purchases. 40 States in the US allow surcharge fees to customers who pay with credit card. – Surcharges can not be assessed on debit cards. They are added simply for the privilege of using a credit card. A “ cash discount " occurs when a merchant decreases the price for cash purchases. Cash discount programs do not discriminate one card over another. Cash Discounts reward customers for paying by a particular means and/or for not using a particular means of payment. In Summary: A "surcharge" occurs when a merchant increases the price for credit card purchases. A “cash discount" occurs when a merchant decreases the price posted for their goods and services for cash payment / purchases.
C a sh D isc o u n t Le g a litie s The Durbin Amendment within the Dodd-Frank Financial Reform Act “EFTA Sections 920(b)(2) and (3) impose certain limits on the ability of payment card networks to restrict merchants and other persons in establishing the terms and conditions under which they may accept payment cards. Specifically, EFTA Section 920(b)(2) prohibits a payment card network from establishing rules that prevent merchants from offering discounts or in-kind incentives based on the method of payment tendered to the extent that such discounts or incentives do not differentiate on the basis of the issuer or payment card network”. -Federal Registrar, Volume 76, No. 139, July 20, 2011. Part II Federal Reserve System 12 CFR Part 235 Debit Card Interchange Fees and Routing; Final Rule Caveats: (i) “a discount for use of debit or credit cards does not discriminate on the basis of the issuer or network and (ii) (ii) any discount insofar as required by other applicable law is offered to all customers and is conspicuously disclosed and prohibits networks for penalizing retailers for providing discounts that are permitted by federal and state law”
W h o ’ s u sin g C a sh D isc o u n t to d a y ? Personal Services Consumer Goods Restaurant Industry Hotels Gas Stations Diners ATMs Local Grocers Quick Serve Hair Salons Specialty Boutiques Takeout/Delivery Services Nail Salons Antique Stores Food Trucks Dry Cleaners Retail Clothing Stores Bakeries Spa/Massage Variety Stores Coffee shops Auto Repair Shops News Stands Ice Cream Shops Pet Grooming Dollar Markets Hot Dog Stands Daycare Centers Smoke Shops Government Utility Companies Cell Phone Providers Municipalities Comcast Verizon Schools Dish Network Sprint Universities Consumer’s Energy AT&T Courts Dish Network T-Mobile IRS
Tra n sp a re n c y Cash Discount Programs require complete transparency to the customer. Clearly published pricing must be displayed on the front door and at the register. We provide all signage to merchants.
Tra n sp a re n c y The software provides customer receipts clearly outlining: Base cost Cash discount Total sale
Tra n sp a re n c y Merchant statements are simple and easy to read.
Tra n sp a re n c y It is recommended to offer the customer Would you like to save $.60 by the cash discount verbally when they are paying in cash, or use your card? at the register. It eliminates any remaining confusion • It makes the customer feel good that • you are offering to save them money.
Customers don’t really mind the service fee. I W ill it w o rk f o r m e ? ask if they want to save by paying in cash, but Look at the numbers: they want to do a card payment, every time. -Owner, Alice Burger Merchant: Alice Burger, Palmdale, CA Average ticket: $21 PayLo Service Fee: $.79/ transaction Standard Processing : April – August 2016 PayLo Processing: September2016 – January 2017 The Results Card sales volume INCREASED +$2,904.93 /month on average Card processing costs DECREASED -$1,569.69 /month on average Merchant SAVED a total of $6,278.76 = $18,836.33 in savings a year!
W ill it w o rk f o r m e ? But will it work for you? Find out for yourself. Word is spreading. Thousands of merchants across the US and Canada are daring to be different and saving 1. Sign our anytime opt-out agreement. money with the Cash Discount program. We send you everything you need to set up your system . 2. Install yourself or have our technical support team walk you through setup at no charge. 3. Choose to run just the system or keep your own system as backup. 4. After 30-days, we will show you your savings and if you are not 100% satisfied, return the equipment at no cost to you. Pay only our $99 technology licensing fee. - and PAY NO CREDIT CARD FEES for any cards run under the system.
Q u e stio n s For more information on how to start saving with this program: Greg Pettegrew Allied Synergy Group, Inc. 1-888-220-6044
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