Back to Blog Simplified Cash Discounting with EPX EDGE
December 9, 2020

Simplified Cash Discounting with EPX EDGE

Edge Cash Discounting Program

Today's Cash Discounting Programs can be a huge saving grace for businesses wanting to cut costs on credit card processing fees. Edge Cash Discount ultimately makes the payment process more simplistic for all parties involved. That's why it's no surprise that more and more Businesses of all kinds are quickly switching to the Cash Discounting program. Taking into consideration that your business most likely processes multiple credit card transactions on a daily basis. Business owners are losing anywhere between 2-4% in credit card processing fees with every transaction. All of that adds up! When customers are encouraged to pay with cash, you’ll significantly reduce the risk of chargebacks, pricing disputes, data breaches, fraud, and other complications. Those Merchants and Business owners that have implemented the Cash Discounting Program are instantly reducing processing fees and increasing a little thing called “peace of mind” into their profit margins. 

What is a cash discount program?

Passing the cost of processing on to the consumer is one of the most popular trends in the payments industry. A cash discount is a method used by businesses to save on the cost of credit card transaction fees. Through these programs, customers receive a discount on goods and/or services by paying with cash instead of a credit card. Cash discount programs are not credit card surcharges because they do not levy a fee that is added to a credit card transaction.

What is a surcharge?

A surcharge is a fee that vendors can add onto credit card transactions to make up the cost they’re charged by the credit card association. The Surcharge or fee is added towards the price of a good or service and is usually added towards an existing tax. 40 states in the US allow surcharge fees to customers who pay with credit card. The remaining states that prohibit surcharges are California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma, and Texas. Surcharges, however, cannot be assessed on debit cards.

They are added simply for the privilege of using a credit card. Typically, surcharges are based on a specific percentage of the total price of goods or services before taxes are assessed.


What is the difference?

The Payments Journal explains that “cash discount programs are not card surcharges because they do not levy a fee that is added to a credit card transaction.” Instead, they do the opposite. They give you as a business owner an opportunity to provide a discount off of the advertised sales price to your customers. Unlike surcharge programs, cash discount programs are seen in a better light, and fare better with the end- consumers. There has been a misconception that a cash discount program would prohibit sales if a customer does not carry cash.

How does it work?

Cash discounting works by giving a discount to all customers who choose to pay with cash or in-store gift card, instead of a credit card or debit card. Customers who choose to pay with a credit card will pay the marked amount because the processing cost is built into the cost of the product. This allows the business owner to get the full payment from the customer and not incur any credit card processing fees. 

 True cash discounting Programs, such as the EPX EDGE Program, will automatically determine the service fee or discount amounts depending on the payment type and how you/the business owner sets it up. Legal cash discount programs must present a clear receipt detailing the service fee or cash discount amount. (The Edge Program offers this) This may not work for everyone, but many businesses are finding relief and a way to have more cash flow to invest back to their business growth. 

We also recommend that the merchant or business workers provide at least one point of notification prior to sale that there is a service fee applied to all sales and a discount given if a cash payment is made. Most businesses verbally let customers know at point of sale and also place multiple points of notification such as at the door, register of the store and throughout the establishments.

Is it legal to offer a Cash Discounting Program?

One of the most frequent questions we get is “Is cash discount legal?” 100% yes, our Edge program is legal, utilizing a cash discount at the point of sale is completely legal in all 50 states. A cash discount can easily be confused with a credit card fee or surcharge, which is legal in only 40 of the 50 United States. (Surcharging is illegal in Texas, Oklahoma, New York, Massachusetts, Maine, Kansas, Florida, Connecticut, Colorado and California.)

Why would I want to implement the Cash Discounting Program?

Other than the ability to potentially eliminate your monthly processing fees, the Cash Discount Program can really help those businesses that are most impacted by high processing costs. Consider small ticket merchants like a sandwich or coffee shop. You may have an average transaction size of only $4-8 dollars (sometimes even less). The underlying Interchange cost on a debit card used as a credit card is .05% plus $.22 per transaction before any processor fees. If you accept a debit card on a $5 transaction, your effective rate (fees divided into the sale amount) will be $.2225 divided into $5 or 4.45% before paying any additional fees! Compare that to a business that has a $100 dollar average transaction where their total costs are $.27 so their effective rate is now only 0.027%. The same credit card was used for each transaction, but the overall impact to profit is radically different. Using the Cash Discount Program can mean the difference between a business that is profitable and one that is just squeaking by (or sadly, not squeaking by…)

What are the best types of businesses for Edge Cash Discount Program?

  • Restaurants/Bars/Clubs 
  • Automotive industry (Transmission, Body Shop, Tires)
  • Service Industry (Flooring, Roofing, Plumbing, Landscaping)
  • Service Health Industry (Spa, Salon, Chiropractor, Nutritionist)
  • Specialty/Novelty (Boutiques, Gift Shops, Vape/E-Cig)
  • And more!



Your costs associated with non-cash payments can be dramatically improved

  • Edge Cash Discounting has small-to no monthly or annual costs (some equipment or POS systems may have a low monthly fee) 
  • You don’t have to make a contract commitment
  • Receive Free equipment
  • Clearer, non-confusing customer receipts


Enjoy the same profit margins from cash payments as you do from non-cash payments.





We provide you with what you need

  • Free signage explaining the program to your customers.
  • Free Edge Cash Discounting software
  • Free equipment options.


What Edge Cash Discounting eliminates

  • No monthly or annual costs
  • No statement fee
  • No batch header fee
  • No PCI compliance fee
  • No contract commitment



Our Edge Cash Discounting program works on many POS solutions to meet your business needs and most options include free equipment solutions with our placement program.


No Confusing Customer Receipt

When your customer checks out at the point-of-sale, our EDGE software knows, in real time, how to adjust the transaction to offset any costs. This adjustment is called the Cash Discount adjustment. This Cash Discount adjustment means, your customer is providing you the same profit margins, whether they pay in cash or not. It doesn’t get any easier than that.

You continue to price all of your merchandise assuming cash payment. If you have been charging your customers a higher price than you would like to charge because you knew many would pay with plastic, you can now offer the cash discount pricing on all advertised pricing.  This would make your advertised pricing more competitive and attractive to the consumer without costing you a dime.

Is the EDGE Program Right for You?

Not sure if this program makes sense for your business? Ask yourself the following questions:

  • Do a majority of your customers use non-cash forms of payment?
  • Are your margins suffering because of payment processing costs?
  • Are you looking for a simple solution to improve margins?
  • Do you want to be fair to all of your customers with your pricing?
  • Do you want to defend yourself and other small business owners from the rising costs of accepting non-cash payments?

Check out Northwest Payment Brokers Cash Discount Page to find out more!