Running a business is both an exciting and challenging venture. It is exhilarating because you are living the dream of becoming your own boss. You call the shots and you have full control of the direction your business goes. Whether you turn a profit or not is entirely in your hands. However, a business is not without its risks too. One example of such a risk is credit card fraud.
Credit card fraud is something every business owner worries about. Dealing with fraud is a loss to your business and every time your customer opts to use a credit card to pay for their purchases, there is always a small element of risk involved. Unless you know your customer well, it can be hard to tell who might be guilty of possible credit card fraud.
Luckily, there is a way to eliminate the possibility of credit card fraud forever. The answer lies in a cash discount program. A cash discount program works by offering your customers a special discount only if they choose to pay in cash. For example, instead of paying $10 dollars for an item, your customer could pay $9 if they choose to go with the cash approach.
You are able to offer such a discount to your customers if your credit card processing costs are worked into the price of the product. For example, by charging your customers $10, the credit card processing fee you would have to pay is already worked into the price of the product or service. You are still offloading the costs to your customers. This way, when a customer comes in wanting to pay cash, you get to offer them this “special” discount by simply removing the price of the surcharge from the asking price.
A cash payment system works to everyone’s advantage. Your customers walk away feeling happy because they believe they have scored a bargain on your product or service. A happy customer is a customer who is going to spread the word about your business to their friends. They will go back and tell their friends to bring cash to your business in exchange for a discount in your store.
This is how the cash discount program also doubles as a marketing strategy. You only need to promote this option to your customers at the point of purchase once. Once they know they can get a discount if they choose to pay cash, they will come with cash in hand at the ready the next time they venture into your store.
As long as the discount you offer is still a profit in your pocket, a cash discount program is worth it. You keep your customers happy and you keep yourself happy by knowing you have eliminated the risk of possible credit card fraud for good.
For more information about PaymentCloud and the cash discount program and how it works, visit the link above.