What Is a Non-Cash Adjustment?

By Cash Discount Program on January 18, 2024
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A non-cash adjustment program is when businesses offer discounts to customers who pay using cash instead of debit or credit cards. Your goods remain the same price, though those paying with cash get a discount.

Non-cash adjustments can encourage your customers to pay with cash and take advantage of discounts. Businesses enjoy the perks of a non-cash adjustment program because it costs them less in processing fees.

Also known as cash discount programs, these can benefit your business and your customers alike. However, it is important to know all the details to see if it is a good fit for your business needs. 

Is a Cash Discount Program the Same as a Surcharge Program?

Cash discounting programs are when a business offers cash discounts to customers who pay with cash rather than debit or credit. As a business owner, you add a customizable service fee to all debit and credit card transactions while those paying cash get discounts.

Cash discount programs can offset the payment processing costs you experience. However, it is important to understand that a true cash discount program is not the same as a surcharge program. A surcharge fee is an extra charge that applies to credit card customers. In many states, surcharge programs are not permitted while a cash discount program is allowed in every state. 

Types of Non-Cash Adjustment Programs Businesses Can Use

To fully answer the question, “What is a non-cash adjustment?” it helps to explore each type of non-cash adjustment program. If you are looking for ways to offset your business costs, these options for cash discounting may be a good fit. 

Percentage-Based Discounts

With this cash discounting program, discounts are provided in a fixed percentage off of the listed price of an item. You may offer a 3% discount for your customers that make cash payments.

Dollar-Based Discounts

Another form of cash discounting involves simply offering a fixed dollar amount off the listed price of a product. 

Combination Non-Cash Adjustment Programs

As a business owner, you may want the best of both worlds in cash discounting. Combining both percentage-based and dollar-based discounts may be a better option. You may offer discounts in a percentage for cash payments on totals that are over a certain dollar amount, such as $100, or you can offer a dollar-based discount on anything under that amount.

Discounts on Particular Items

Another way to make cash discounting work for you is to offer discounts on certain items when your customers pay in cash. Perhaps you may consider giving cash customers a 10% discount off the cash price of particular items in your store. 

Payment Type Discounts

There are many ways to go about implementing a non-cash adjustment. Some stores choose to provide the biggest discounts for cash payments, perhaps with a 5% discount while offering a smaller percentage discount for those using debit card payments. 

Gift Cards

Another way to encourage payments by cash is to offer a store-branded gift card for customers that use this method of payment. It can be a great incentive to encourage additional spending, especially around the holidays. If you offer a $10 gift card for every $100 your customers spend in cash, it can be a great promotion.

Keep in mind that these are just a few ideas for implementing a non-cash adjustment program. Non-cash adjustments can be offered in any type of combination of discounts that you want to provide. However, these terms must be clearly posted as you do not want to come under fire for misleading cash discount programs.

Additionally, you are not required to offer cash discounting, though it may be a good boost to your business. You should think about your customer base, credit card processing fees, fees for processing debit cards, and your sales goals to find the ideal solution for your needs.

Benefits of a Non-Cash Adjustment Program

Customers paying in cash can save more when businesses offer non-cash adjustments. They get benefits and small businesses do too. Restaurant and retail businesses in particular may see a boost in business when they advertise cash prices that are lower than credit or debit card prices. 

Save Money on Processing Fees

If your business accepts credit and debit cards, you are typically charged with debit and credit card processing costs. Accepting credit or debit means you have all these fees that add up. The higher your sales volume, the more you will pay in credit card fees. You can mitigate some of these costs by offering cash payment discounts with our program. CashDiscountProgram.com will set your business without any set up costs. 

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Helps Businesses and Customers Avoid or Reduce Fees from Credit or Debit Cards

While credit card processing fees are steep for businesses, they can also result in additional fees for customers. If you encourage your customers to pay in cash, they can avoid a surcharge on their bill.

Less Expensive for Businesses

Any business that accepts credit or debit cards needs to spend time inputting information and handling declined transactions. Cash transactions will save you time and money. 

Cash Discounts Are Available Nationwide

There are no laws that prohibit businesses from offering discounts for cash payments. You are free to offer this program to your customers to help them save while also reducing your own costs.

You Have the Ability to Combine Your Discounts

You also have the freedom to offer any combination of discounts you want. The only stipulation is that you must advertise this clearly without being misleading.

Attracts Customers

When you offer a non-cash adjustment, it can help you attract new customers to your business. People love finding ways to save and they may be more inclined to try you out if they know you offer a discount. 

Create Customer Loyalty

A non-cash adjustment is a great way to increase customer loyalty. Customers that get a discount through your cash discount program are more likely to come back. 

Things to Consider for Cash Discounting Programs

Cash discount programs can be just the thing your business needs, though there are some important points to consider. Customers may need clarification on your pricing structure. You want to be sure that it is clear to prevent them from thinking they are being overcharged by paying via credit or debit card.

Additionally, make sure your business posts display signage at the entrance as well as the point of sale. If you don’t display signage that lists dual pricing with both the cash price and credit card prices, it can be considered misleading.

It may be a bit confusing for your employees if you have to change your pricing structure. You may also find that customers that don’t have enough cash on them may decline to make a purchase. Many people aren’t in the habit of carrying lots of cash and don’t want to have to run to an ATM. 

Should You Implement a Cash Discount?

With a cash discount program, dual pricing needs to be listed. However, if you’ve already listed your products with the cost of credit cards accounted, then it is easy to implement. 

Most people are thrilled to get discounts in any way, and by making it clear about your processes and policies, it may invite them to come back by planning ahead to bring cash. A true cash discount program will benefit most businesses and those they serve.

To make sure you’re getting the best benefits of a non-cash adjustment program, contact the team at CashDiscountProgram.com to learn more about how much you can save. Instead of letting processing fees hold you back and chip away at your bottom line, you can provide more benefits with a non-cash adjustment to charge cash paying customers less than the credit price. Customers who pay this way will be glad to save, and so will you!

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