Cutting Credit Card Fees Without Cutting Corners
Running a liquor store isn’t cheap. Between compliance, licensing, staff, and credit card fees that keep climbing, it’s no surprise that many liquor store owners are looking for ways to save. That’s where cash discounting comes in.
Cash discounting is exactly what it sounds like: offering customers a small discount when they pay in cash instead of credit. On the surface, it’s a simple solution to offset credit card processing costs—but it’s not always as straightforward as it seems.
Here’s what liquor store owners need to know before jumping in.
The Benefits of Cash Discounting
✅ Lower Processing Costs:
The most obvious advantage is that you reduce—or even eliminate—credit card fees. With a compliant system, those fees are passed to card-paying customers, and cash-paying customers get a small discount.
✅ More Predictable Profit Margins:
By removing variable card fees, you make it easier to forecast your costs and earnings.
✅ Incentivizes Cash Transactions:
In industries where margins are tight, encouraging cash payments can lead to better cash flow and fewer third-party transaction delays.
The Drawbacks to Consider
❌ It Must Be Clearly Disclosed:
Signage is required. If you don’t notify customers in-store that card payments include a fee or that cash earns a discount, you could face fines—or worse.
❌ Customer Pushback:
Some customers may feel like they’re being penalized for using a card. You’ll need to train staff to explain the policy clearly and politely.
❌ Non-Compliance Risk:
Many processors implement cash discounting incorrectly, essentially turning it into a “surcharge,” which can be illegal in certain states. Always work with a provider who understands cash discounting rules and regulations.
Dual Pricing: The Smarter Alternative?
If cash discounting feels a little clunky, there’s a modern option: dual pricing.
With dual pricing, both cash and card prices are displayed at the point of sale. Customers choose which price they want to pay. This keeps your store transparent, legal, and compliant—without the gray area of surcharging.
It also keeps you covered in states where surcharging is banned but dual pricing is allowed.
What to Do Next
If you’re exploring cash discounting or dual pricing for your liquor store, make sure your POS and processor are up to the task. The wrong setup could land you in hot water with your processor—or even your state regulators.
At Lifelong Merchant Services, we help high-risk businesses like yours set up fully compliant, profit-friendly solutions from day one.
👉 Read more about Dual Pricing here
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