Running a successful retail business requires offering customers flexible ways to pay, while also managing expenses thoughtfully. Being able to accept credit cards or other payment methods comes at the cost of transaction fees.
Even with low credit card processing rates, these can add up over time, especially during high-volume seasons.
Cash discounting can give retailers a practical alternative, while maintaining a smooth checkout experience.
What cash discounting means
Cash discounting is a pricing approach that encourages customers to pay with cash by offering a small discount when they do.
Standard retail prices often include the merchant's cost of credit card processing fees. This means customers who pay with cash are effectively paying for a service they aren't using.
A cash discount program addresses this by offering a reduced price for cash payments.
Why retailers consider cash discounting
Cash discounting supports healthier margins and gives customers another path to value.
When a shopper uses a credit card to pay, the transaction introduces processing costs that your business must absorb or pass on to the consumer. By contrast, when a shopper pays in cash, those fees disappear, improving profitability.
Cash discounting provides transparency at checkout, empowering customers to choose their preferred payment method with a full understanding of any potential fees involved.
For the business, it preserves revenue by eliminating transaction fees on cash sales while fairly allocating the cost of card processing.
Implementing a cash discount program
Northโs solutions make cash discounting straightforward through technologies such as its Edge Program, available through Pay Center. The program allows you to use your existing retail POS or a compatible terminal to support a dual-pricing model. This allows for one price for card transactions, and an automatically discounted price for cash payments.
To get started, confirm how the discount fits into your current pricing structure, then configure your POS to apply the discount accurately.
Display clear signage at checkout and online, so customers understand their options.
Train staff on how to accept cash discount payments and how to explain the program when questions arise.
Monitoring customer feedback over time can help you refine the experience and ensure smooth operation. Cash discounting can strengthen customer satisfaction while reducing operational expenses. With the support of a modern POS and a structured program like the Edge Program, your retail business can provide transparency, preserve margins, and maintain a frictionless checkout for every shopper.
North is a leading financial technology company that builds innovative, frictionless end-to-end payment solutions designed to simplify and grow businesses of all sizes. From the front door, to the back office, the developer world, and partnerships that expand the payments landscape, North offers proactive, comprehensive merchant services, in-house processing, and more.
