{"id":1027666,"date":"2022-11-19T10:22:45","date_gmt":"2022-11-19T18:22:45","guid":{"rendered":"https:\/\/customerthink.com\/?p=1027666"},"modified":"2022-11-19T10:22:45","modified_gmt":"2022-11-19T18:22:45","slug":"how-can-iso-and-payfac-benefit-from-credit-card-surcharging-and-cash-discounts","status":"publish","type":"post","link":"https:\/\/customerthink.com\/how-can-iso-and-payfac-benefit-from-credit-card-surcharging-and-cash-discounts\/","title":{"rendered":"How can ISO and Payfac Benefit from Credit Card Surcharging and Cash Discounts?"},"content":{"rendered":"
With a rise in the popularity of legal cash discounts and various surcharge programs, it becomes very typical to find businesses looking for different tactics to lure customers. Credit card surcharging and cash discounting are the two most extensive tactics. <\/p>\n
Although this method is gaining popularity, various credit card processing organizations are running left and right by offering their users “cash discount” programs to eliminate multiple credit card processing fees. Are these legal? At the same time, what are credit card surcharges and cash discounts, and how can merchants benefit from them?<\/p>\n
These two alternatives are the practices merchants use to give up on processing fees, adding a small amount of premium to purchases made through credit cards, or offering a discount on cash payments. <\/p>\n
\nBoth of these are becoming exponentially famous as merchants recoup partial or complete fees they make through card transactions.<\/h3>\n<\/blockquote>\n
Many merchants are hesitant to use this method, leaving a lot of room to learn and grow. Also, while it may seem otherwise initially, the concept of surcharging or cash discounting can benefit the merchants. <\/p>\n
Before moving on to the benefits, let’s understand the basics first.<\/p>\n
What is credit card surcharging?<\/h2>\n
When a customer pays with a credit card, a tiny fee, or surcharge, is added to the transaction to make up for the amount the merchant must pay to process the transaction. This practice is known as credit card surcharging. Surcharging is also known as zero-fee credit card processing<\/a>. <\/p>\n