Who is Titanium Payments?
Titanium Payments does merchant card processing through a cooperative buying network that offers “processor direct” wholesale pricing in the electronic payment industry.
Titanium Payments offers custom payment solutions including offering unlimited credit card Processing for one small monthly fee as well as Cash Discount that saves businesses thousands of dollars.
Why is everyone moving to Cash Discount?
It’s simple. Switching to cash discount saves your business thousands of dollars.
Perfect for Retail & Service Industries Businesses began adopting this program in niche markets back in 2011. Now it has grown in popularity and is making a splash in the retail and service industries.
Rising Expenses It’s not getting cheaper to accept cards...the average cost of accepting credit cards rose 26% from 2014 to 2018.
Credit Cards Are Here To Stay Cards are not going away…credit cards now make up 75% of in-person transactions!
Understanding Cash Discount
The payments industry is constantly changing; either due to regulations responding to industry trends, new technology entering the space or a variety of other reasons.
It is extremely important for business owners to stay up to date and be knowledgeable on how these changes impacts their business.
1. The Durbin Amendment The Durbin amendment passed with the Dodd-Frank financial reform legislation on July 21, 2010 and went into effect on October 1, 2011. This was considered a major loss for banks, who receive billions of dollars a year in income from swipe fees. It also empowered business owners with lower prices and the ability to offer a cash discount to their customers.
2. Cash Discount What the Durbin Amendment says on cash discount: “Merchant may offer a discount for cash or another form of payment (e.g., proprietary card or gift certificate) provided that the offer is clearly disclosed to customers and the cash price is presented as a discount from the standard price charged for all other forms of payment.“
3. Confusion in the Industry The Durbin Amendment states what a business is empowered to do, but leaves it fairly open on “how” they do it. There are two popular methods in which merchants may take advantage of Cash Discount, this causes a lot of confusion in the industry, as well as finger pointing.
Option 1: Merchants may reprice all their items in their business to reflect a built in ‘credit price’ and have an additional ‘cash price’ next to it. (ex: a loaf of bread will have it’s price displayed as the following - “Credit Price: $3.11/Cash Price: $3.00”)
Option 2: Merchants may disclose via signage and proper messaging that all products and transactions are subject to a 3.95% Service fee and that this is the standard price. Then offer a 3.95% cash discount at the register for cash-paying(or equivalent) customers. Both options abide by the rules stated in the Durbin Amendment, neither are more right than the other.
4. How Titanium does Cash Discount We have implemented cash discount both ways, option 1 & 2. In truth it is up to the merchant as to how they would like to present the program to their customer, via option 1 or option 2. Over the years, Titanium has been audited by the card brands several times and has never received a fine, legal recourse, or been told that what we are doing is incorrect. The card brands might not ‘like’ cash discount, but that doesn’t mean it’s illegal.
Make the switch today and start saving money!
Frequently Asked Questions
What will my customers say about the fee? Of the 1000+ merchants we’ve boarded on Cash Discount this is the most common question we hear. And rightfully so! The lower your average ticket, the less your customer will object. On average 5 out of 100 customers will mention the fee. Once explained, only 1 out of 100 will object to the fee.
Is it legal? Yes, as of October 1, 2011, the Durbin Amendment went into effect. This amendment, passed along with the Dodd-Frank Wall Street Reform and Consumer Protection Act, allows merchants to offer a cash discount to customers in all 50 states.
How do I explain the program? We have made this as easy as possible for you to adopt Cash Discount! We provide the signage, the verbiage and the itemized receipt to clearly and concisely explain the program .
What happens if a customer is upset about the program? If a customer is objecting to the fee, you can simply hit a skip-fee button on our cash discount terminals and the customer will not be charged a fee on that transaction and will know for next time that they should bring cash to receive the discount.
Is cash discount bad for business? Simply put, no, while we can implement cash discount for any business (Yes, even e-commerce.), you as a business owner have to think about how and when your customers pay for your product or service, what your average ticket is, and are the potential savings worth your time to switch? That said, we have clients on cash discount from restaurants & bars, brick & mortar retail, doctor’s offices, independent contractors and auto body shops to name a few!
What if it doesn’t work and I want to go back to paying the fee? Switching back to standard pricing is as simple as a pricing update and a programming update to your terminal(s). We have plenty of clients who try it for 30 days, knowing they can turn it off at any time.
However, most businesses find when they stop eating the fee and are saving thousands of dollars, they don’t want to go back to the old way of doing things!
Is Cash Discount the same as Surcharging? No. As of the making of this document, surcharging is still banned in six states(CO, OK, KS, CT, ME & MA). Think of Cash Discount as a delivery fee for a pizza restaurant, they charge a delivery fee because it costs more to deliver a pizza to someone’s residence. You’re offering a discount to your cash paying customers because it cost more to accept a credit card and deliver the same product or service. Your service fee is your delivery fee.
Signage is your friend
Proper signage and placement will solve 99% of your potential hurdles with
a new program such as Cash Discount. If the 1% pops up, it's as easy as 1-2-3.
1.Advertise the Discount 2.Explain the Program 3.Skip the Fee
Enjoy the convenience of secure mobility with an Android-based wireless terminal.
Many of Titanium Payment customers qualify for a FREE contact-less POS terminal from Dejavoo that is cordless, works over wi-fi, 4G, and works with ApplePay/Samsung Pay.
From countertop, pin pad & wireless payment terminals to kiosks & vending machines, Titanium Payments provides the perfect solution to meet your specific needs and budget.