Save Massively
During COVID-19 + beyond, all expenses are on the table and subject to revision. Here’s an actionable way to improve your margins 10-30% by cutting out the first expense skimmed off of each sale.
Manage a Growing Cost
With sales almost exclusively plastic, these incurred credit card costs have grown more burdensome than ever before. Credit card costs are skimmed right off the top and often go under the radar for many businesses.
3.5% of your total revenue back to your bottom line can be a major income builder.
Lean On Your Community
During tough times, we can all benefit from support. Communities understand the current need to support small businesses more than ever. Pass along a marginal 4.0% fee to customers at checkout for the convenience of using credit cards.
Ensure You Are 100% Compliant
Appropriate disclosure and alignment with state code so Amex, Mastercard, and Visa can’t complain.
Some History ON Cash Discounting
Cash Discounting first Became an Option in 2010 with the Passage of the Dodd-Frank Law.
The Durbin Amendment is part of the Dodd-Frank Law passed in 2010. Designed to lower debit card interchange fees for business owners, The Durbin Amendment birthed balance for an enterprising industry.
“(2) LIMITATION ON RESTRICTIONS ON OFFERING DISCOUNTS FOR USE OF A FORM OF PAYMENT.-
“(A) IN GENERAL- A payment card network shall not, directly or through any agent, processor, or licensed member of the network, by contract, requirement, condition, penalty, or otherwise, inhibit the ability of any person to provide a discount or in-kind incentive for payment by the use of cash, checks, debit cards, or credit cards to the extent that-
“(i) in the case of a discount or in kind incentive for payment by the use of debit cards, the discount or in-kind incentive does not differentiate on the basis of the issuer or the payment card network;
“(ii) in the case of a discount or in-kind incentive for payment by the use of credit cards, the discount or in-kind incentive does not differentiate on the basis of the issuer or the payment card network; and
“(iii} to the extent required by Federal law and applicable State law, such discount or in-kind incentive is offered to all prospective buyers and disclosed clearly and conspicuously.
“(B) LAWFUL DISCOUNTS.-For purposes of this paragraph, the network may not penalize any person for the providing of a discount that is in compliance with Federal law and applicable State law.
Main TakeAways:
- CARD BRAND CANNOT INTERFERE
- STANDARDIZE THE PROCESS FOR EACH CUSTOMER
- NO AMBIGUITY. THE WAY TO DISCOUNT OR INCENTIVIZE MUST BE COMMUNICATED TO THE CUSTOMER. THIS IS WHY SIGNAGE/WEB DISCLOSURE IS IMPORTANT.
Why Change?
You Lose About 3% Each Sale
Small Bites Add Up
Amex, Mastercard, Visa profited over $20B in 2019
Customers WANT To Support LOCAL bUsiness.
"This made me uneasy at first, however, my customers understand the pressure COVID has put me under and they love my food."
GiusEPPE David, Owner
Original Italian Pizza