It is not surprising that if your profit margins are thin that your company is looking for a better way to do business. Credit card payments have their place. They offer convenience for customers and help out buyers who do not carry a lot of cash. However, the use of credit cards puts additional charges onto a purchase, chipping away at your profits. A cash discount program is one way to reduce the number of people who pay by credit cards, thus lowering your costs. This practice is legal in all fifty states. The process is simple. A customer who pays by credit card in essence pays the processing charges that typically run at about 4%. If the customer pays by cash, they receive a 4% cash discount, lowering their costs. Merchants who correctly use this method can reduce processing charges by 95% in some cases. A surcharge program accomplishes the same goals but works a little differently.
The Features of a Surcharge Program
This approach also offsets the majority of your credit card processing fees, though in a slightly different manner. In this case, a surcharge of 4% is added to purchase if the person pays with a card. The normal price of the item is the cash price. This practice is currently legal in 44 states, with a trend of more states easing restrictions allowing surcharge programs. The key to making this program work is the correct software and hardware program for your business. The installation of a Clover mini in your place of business offers the following features:
- Easy setup and management
- Nationwide coverage
- Simple process to encourage cash
- Automatic recovery of card processing fees
- Convenient collection of sales
The Clover POS is easy for your employees to use, and it accepts nearly all credit cards as well as the growing number of contactless payments. It is important to choose the right payment system for your business. Making the wrong choice costs money and frustrates employees. To take your company to the next level, you need a system that looks nice, is reliable and includes tech support should problems arise.
The Suitability of the Right POS
Whether you are looking for a POS system for auto repair shop or for the food services industry, you deserve a platform that expands your capabilities as it saves you money. The right system simply makes all aspects of your business easier. An advanced system allows you to track inventory, run reports, make payments and keep track of time records. It will also make things easier for your customers by accepting credit and debit payments, chip cards and touchless payments. The cash discount program or the surcharge program are easily incorporated into the software. Just as importantly, the advanced software allows for a high degree of customization. No matter what type of business you run, you will have the ability to add apps at anytime as well as increase your capabilities at a later date. A powerful POS system is a good way to increase your profits along with the look and service potential of your company.