If you are a Square seller looking to implement a cash discount program, you can do so in a few steps:
- Update your pricing: You may want to update your pricing to recoup the cost you will incur on a credit card transaction. For example, if an item is $10 and a customer pays with a credit card, there could be an additional 2.6% + .15 (an overall 4.1% rate - .41 processing fee) that you will have to pay on that transaction, which comes out of the $10 the customer paid for the item. In this case, you may reprice your offering at $10.41 to cover the cost. For customers who pay in cash, you offer them a 4% discount on the item and charge $10 exactly, passing the credit card processing fee savings on to them and also creating a simpler transaction with a ten dollar bill.
- Market the offering: Create signage or provide updates on your digital surfaces to market your cash discounting program. Be sure to communicate what you are offering clearly.
- Create a discount through Square Dashboard: You can create and list a discount through your Dashboard and enter the percentage discount you’d like to offer in exchange for purchasing with cash. You can then apply this discount when customers pay. Square only support whole digit discounts.
- Get staff up to speed with the program: Remember to train your staff so they are aware of these changes and know how to apply the discount to the appropriate transactions. Think about creating a small list of frequently asked questions so that your team members can reference answers easily if customers ask about the program.