The Green Sheet Online Edition
August 28, 2017 • Issue 17:08:02
Automated, out-of-the-box cash discount program
New Orleans-based Processing Solutions Inc. has created XeroPoint., a comprehensive cash discount program designed to offset merchant processing fees and pricing. The solution includes a XeroPoint.-enabled POS device, cash discount signage, continuous training and support and optional PSI sales partner training, the company stated.
"In our discussions with merchant level salespeople, we saw a need to put margin back into the industry to create a win-win for merchants and agents," said Derrick Hess, Managing Partner at PSI. "Our authorized PSI sales partners are putting hundreds of basis points per merchant back into their portfolios while virtually eliminating processing fees for business owners."
Hess added that merchants with average tickets between $10 and $100 can benefit from the program, and agents appreciate the ability to demonstrate the program's ease of implementation and profitability.
Fully deployed, fully vested
"XeroPoint. is ready to go, out of the box, and PSI-authorized resellers are fully vested on day one," Hess stated. "When you sign a merchant on the XeroPoint. program, we send them everything they need and provide 24/7 support." Hess added that XeroPoint. terminals are deployed with cash discount software, required signage and receipt disclaimers at no cost to participating resellers and merchants.
Following are additional program benefits the company described:
- Improved margins: Merchants and agents who have participated in the program have reported increased margins of up to 400 percent.
- Access to First Data Corp. platforms: The XeroPoint. program is compatible with many of First Data's vertical solutions, including Petro and Clover.
- Free terminals: XeroPoint.'s free terminal program enables PSI to provide continuous support and software updates as needed.
- Easy, fast on-boarding: Fast approvals and terminal deployments reduce wait times and enable agents and merchants to realize XeroPoint.'s cost savings and benefits.
- 24/7 help desk for customer service, tech support: Merchants have access to live support from knowledgeable payments industry experts, when needed.
Benefits beyond just processing
Cash discount programs have been implemented in Europe and at U.S. gas stations for decades, Hess noted. Many national, state and local governments, including departments of motor vehicles, municipal courts, educational institutions, and the Internal Revenue Service have implemented service fees. Unlike most credit card surcharging programs, cash discount programs use the same national guidelines.
Participating merchants post a uniform service fee for all sales. Consumers who pay with a method other than cash will incur a 4 percent service charge, which is automatically calculated by the XeroPoint. terminal and appears as a line item on the customer's receipt. The service charge is waived for customers who pay with cash, checks and prepaid products at checkout. There have been few objections to the small upcharge, and some merchants have reportedly offset up to 99 percent of payment card processing fees by implementing the program, PSI representatives stated.
Card brand rules, compliance
The XeroPoint. Cash Discount Program is fully automated, in compliance with card brand regulations, Hess said. Required signage states that all consumers will pay a 4 percent service fee, which will be waived for those paying with cash. The proprietary software automatically adds fees to noncash transactions. This is distinct from credit card surcharge programs, which are more complicated to implement and have rules that vary in different states and territories, the company emphasized.
"Credit card surcharge programs are required by law to state that customers paying with credit cards pay more than customers who pay with cash," Hess stated. "XeroPoint. alternatively rewards cash-paying customers and is fully compliant with Visa, Mastercard, Discover and American Express guidelines, with built-in pricing conducive to card brand guidelines."
Hess said the program is continually updated to maintain full compliance with evolving regulations. In the unlikely event that cash discount programs lose favor with regulators, PSI offers an array of cost-effective, interchange-plus pricing programs, he added.
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