Neighborhood Payments is a proven solution that allows businesses to increase profits by eliminating their credit card processing fees.
A cash discount is the practice of offering a discount to customers who pay with cash, debit card, or check. Gas stations and other specialty industries have been using this process for years. During the past decade, the practice has become more common and used by business owners in many other industries.
The Zero Pay Cash Discount Program is offering a an exclusive payment technology that eliminates a major portion of total card processing costs. It is designed to encourage customers to pay by credit card or cash. A small service charge is applied to all sales using a credit card. A discount is automatically applied when customers pay with cash.
The exclusive technology on the EMV chip card terminal, automatically determines all discounts and actions based on payment type.
As Mitchel Katz, spokesman for the Federal Trade Commission said in May of 2011: The Dodd-Frank law prohibits a payment card network as a Visa “form inhibiting the ability to anyone to provide a discount for payment by cash, checks, debit, or credit cards”. Said Katz. :Neither surcharging a cash discount is illegal”.
No, in fact, is been around for decades in Europe, and is used across the US in in gas stations where a cash discount is offered at the pump. Gas stations have been using this program in the US for over 15 years. Many nationals, state, and local governments including the DMV, Secretary of State, Post Offices, Schools, Courts and the IRS implement a Service Fee.
In order to correctly implement a Cash Discount Program, you don’t need to change any of your prices, you simply post signage (that we will provide) that states all transactions now carry a 3-4% customer service charge. The proprietary technology is provided by Neighborhood Payments in conjunction with our hardware and processing partners, and our current merchant service fees without increasing overall rates. It is a method of implementing a service fee for all customers while giving a discount to those who pay with cash. Therefore your posted rates for those who pay with cash.
While nobody wants to pay additional fees, more and more consumers are starting to realize just how expensive it has been for merchants to accept credit cards. By charging a 4% fee on a sales transactions, that’s a small price for customers to pay for the goods and services you provide. And (if paying that or implementing the Cash Discount Program) allows you to stay in business and keep your overall costs lower, it’s a small price to pay. In fact, surveys have shown that over 80% of respondents stated they wouldn’t think twice about paying that amount (only $1.00 on a $25.00 transaction) for the convenience of using their credit card rather than carrying cash. And we all know that fewer of us are carrying cash these days… and everyone loves the rewards associated with their credit cards. Additionally, we’ve all become accustomed to paying $2-4 when we use an ATM.
Most merchants will see some small fees on their bill as it’s hard to get every transaction to zero out completely based on all the variances in the interchange billing structure. That said, we typically see the monthly fees drop down below $100 per month, even if previously the fees had been several hundred or even several thousand dollars!
If for any reason you wish to discontinue the Cash Discount Program, we will immediately change you back to traditional Interchange Pricing. You will still have a lot of money on your credit card fees by using our flat rate program, which saves business owners and average of 72% over the fees your previous processor was charging.
1191 Higgins Road Suite 207, Elk Grove Village
Chicago, Il 60007
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