Offering discounts for cash payments gives you immediate access to the funds. Right after you receive a payment, you can turn around and make a cash payment. You can’t do this with any other form of payment, as you typically have to wait for cheques and credit card payments to post. By offering a discount for cash payments, you have fewer cheques to deliver to the bank. You reduce the risk of the bank incorrectly posting the cheque into a wrong account, the cheque getting lost on the way, and cheques bouncing for having insufficient funds. In addition, cash payments don’t have processing fees. By avoiding credit card payments, you avoid having to pay processing expenses and related charges. Not many companies offer discounts for cash payments, and it could be a great way to develop relationships with customers. Your clients will appreciate being able to pay lower prices and are more likely to reward you with future business. Although there are limits to being able to adjust prices for credit card payments, there are no limits about offering discounts for cash payments. Therefore, you can come up with the plan that works best for your company regarding discounts for cash payments.
Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.