As some merchants are forced to pay fees on transactions consumers complete with credit cards, they may find it more unaffordable to conduct business. While a recent class action settlement will allow companies to charge customers who pay with credit cards a fee to cover this charge, some merchants may not want to deter shoppers by charging more. The decision isn't applicable everywhere because multiple states have banned stores from implementing credit card surcharges, which still forces some companies to absorb the cost of the credit card transaction.
As a result, some retailers are searching for ways they can lure in shoppers but still lower costs as much as possible. One of the ways in which they're attempting this is by offering discounts to consumers who pay with cash, enhancing their need for a cash counting machine.
Cash payments offer consumers an advantage
Some retailers are now offering a two-tiered pricing structure, listing one price for cash transactions and another slightly higher cost for purchases made with a credit card. While a few dollars may not mean much to the occasional shopper, it can add up for someone who frequents a business regularly. This system may lead regular customers to get in the habit of carrying cash so they can save money at retailers they visit often.
The Washington Post detailed the struggles of business owners who can't make a profit, due to the surcharges associated with credit card transactions. One of these entrepreneurs began offering a 3 percent discount for visitors who paid in cash - roughly the cost of the credit card swipe fee - and he now estimates one-half of his customers pay with paper currency.
Promoting cash discounts to those who pay with cash can be a way for merchants to bring in more business, particularly while consumers are still experiencing the ups and downs of the economy. However, some may also find it beneficial to advertise just one price, but grant a small discount to those who ask about the perks of paying with cash. This may enhance a company's reputation in the eyes of patrons.
As more businesses look to implement discounts for those who pay with cash to avoid credit card transaction fees, they will need to adjust their backroom processes accordingly. By investing in the latest cash counters, they can more effectively handle purchases and better serve customers.
July 11, 2013