A great place to start when deciding whether cash discounts are an added benefit to merchants is to look at buyer behaviors. Learn what a cash discount is or the difference between a surcharge and cash discount.
Buyer behavior data paints an accurate picture of where cash discounts would benefit specific merchants. Age, Income, and store type all factor in critical elements when deciding when a cash discount is a feature that makes the most cents (cheesy pun-intended).
Knowing the audience that your merchant is targeting and clientele that is making purchases will factor into the equation. Based on the US Consumer Payment Study by TSYS, credit cards are preferred over 50% for multiple age groups.
Find out in our quick infographic
In the case of the consumer, the option to receive a cash discount at the point of purchase is not going to negatively affect the buyer’s behavior. If anything, it offers the consumer more decision-making power. There is one caveat regarding transparency with the disclosure of the use of cash discounts. As a consumer, understanding in advance that these options exist will lead to a better experience, so keep in mind that properly posting messaging will reduce the chance for confusion or miscommunication.
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