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ReadersSpeak

Cash discounting online?
Right now, being able to offer both a credit card and ACH
've heard recently about cash dis- option is becoming popular with merchants who send
counting for card-not-present mer- their customers invoices. These tend to be large-ticket or
chants, and I don't see how that's luxury items or services. ACH cash discounting does not
I possible. What am I missing? You yet appear to be incorporated into the checkout experience
can't magically send cash over the internet. for ecommerce purchases, though it appears to be possible
Thom Smyth to do so.
Merchant Level Salesperson
Thom, This topic is explained in the March 8 episode of Merchant
Sales Podcast, where co-hosts Patti Murphy and James
We cannot, of course, magically convert the bills and coins Shepherd interview Hawkins Siemon, founder and CEO
consumers use for payment at physical POSs into digital of Elevate Payment Alliance. In the interview, found at
form for card-no-present payment. However, it is possible www.greensheet.com/podcasts.php, Siemon discusses how
for ISOs serving CNP merchants to have their gateways the ACH works and why a merchant would want to
set up a cash discount option via the automated clearing use it to offer customers an additional payment option.
house. Depending on the gateway, setup can be seamless and
easy for merchants to use. Thank you for your question,
To do this, the ISO needs to establish two processing Thom. We hope you enjoy the podcast, as well as others in
accounts for the merchant, one for cards and the other for the series that address additional topics of interest.
ACH. Then the ISO can request that its gateway implement Editor
cash discounting for the ACH account on the back end. The
cost for processing ACH transactions is drastically lower Cash discounts, yea or nay?
than for processing card-based transactions, which incur Have you found interest in cash discounting among your
interchange fees. Thus, offering a cash type of discount merchants? What about surcharging? We will welcome
to customers who select the ACH option is affordable for your responses and other feedback on relevant issues at
merchants. greensheet@greensheet.com.

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