Providing solutions for any & all credit card processing situations. | Established in 1999
KEEP MONEY IN YOUR BUSINESS BY
ELIMINATING CREDIT CARD PROCESSING FEES WITH OUR REVERSE CASH DISCOUNT PROGRAM!
How the Program Works
What can your business do with more cash?
Equipment, Reporting, and Signage
Electronic Payments offers equipment which makes implementation of this program, as well as reconciliation, fast and easy!
Plus, our monthly statement provides details on what was collected during the month so you can account for all of your savings.
We also provide signage to notify your customers about the program and a list of answers to frequently asked questions, so you’re prepared for inquiries. Additionally, we recommend sharing this quick explanation with your customers:
“We’re assessing a Customer Service Fee to all customers that helps cover our increasing costs of doing business. We offer a discount for cash payments, which saves you money on your purchases.”
Frequently Asked Questions
Why is the Cash Discount less than the Customer Service Fee?
The Customer Service Fee is assessed to cover a merchant’s rising business costs. These costs include, but are not limited to the cost to process card payments. Most of these rising business costs are applicable to every customer who patronizes a location, therefore the Customer Service Fee must be assessed for all customers. Since the costs for card processing fees are not applicable to customers paying cash, a Cash Discount may be provided. Cash Discounts cannot be equal to or greater than the Customer Service Fee assessed. Cash Discounts must be at least 0.10% less than the Customer Service Fee.
Is this program legal in my state?
Yes. The Reverse Cash Discounting Program is legal in all 50 States.
How does this program differ from Surcharging?
Surcharging is a program allowed by Visa and MasterCard where a merchant assesses an additional fee to customers who pay with a credit card. The fee is used to help cover the costs associated with processing credit card payments. However, Surcharging is only legal in certain states. The Reverse Cash Discounting program differs from Surcharging because it applies the Customer Service Fee to all transactions, regardless of payment method. The Customer Service Fee covers all rising business costs, not just costs associated with credit card processing fees.
Can I charge a Customer Service Fee on Debit Cards?
Yes. While Visa and MasterCard do not allow merchants to apply a Surcharge on debit cards, the Reverse Cash Discounting program is not Surcharging. Therefore, debit cards may be charged a Customer Service Fee. The fee is billed to cover all rising costs of doing business, which applies to all customers regardless of what payment method they use.
Am I able to participate in this program if I accept tips?
Yes. This program works for businesses that accept tips. However, we recommend you speak with your sales agent about how tip processing is affected by this program and if it’s a good fit for your business.
Can I use my current equipment to implement this program?
Possibly, but you’ll need to ensure the Customer Service Fee is applied to all payment types, including cash. Since not all equipment has the ability to universally apply the Customer Service Fee, you may have to determine other ways to implement the program if your equipment doesn’t support the process. With Exatouch® and Clover® POS systems, implementation of the Reverse Cash Discounting program is seamless. Contact your sales agent to learn more. You may also want to ask about our Cash Discounting and Surcharging programs.
Do I have to pay taxes on the money I collect as part of the Customer Service Fee?
Yes. The money collected from Customer Service Fees is part of your Gross Sales Volume, which is reported to the IRS on your annual 1099k. You will have to pay state and federal taxes on this money. However, the amount of money Electronic Payments collects from you as Customer Service Fees may be claimed as a business expense.