Cash Discounting has taken the merchant services industry by storm. For years, merchants have been weighed down by excessive payments processing fees and high interchange rates shaving on average 2-3.5% off their bottom-lines. Many companies serving merchants have abused their power by charging unnecessary and excessive fees leaving a bad taste in the mouths of thousands of business owners who accept credit and debit cards.
Now, this so-called new “innovation” is all the proof we need to verify that merchants really do hate paying their credit card fees in this modern economy. If you are unfamiliar with Cash Discounting, it’s essentially the practice of a merchant passing on their credit and debit card fees to their customers. If the customers opt to pay cash instead, then they don’t get charged a fee (hence the discount).
When Cash Discounting first hit the scene, we thought it seemed like dubious behavior and we still have our skepticisms that legislation could change preventing merchants from passing on their fees to their customers. There’s been a ton of scrutiny by consumers who say they wont shop at businesses who essentially pass on business expenses to their customers, however, we don’t have any hard evidence of negative repercussions after adopting Cash Discounting (please email email@example.com if you do).
All of that said, we know MLS’s and ISO’s LOVE Cash Discounting because they make a sh*t ton of money when they sell these programs. Who doesn’t love money, right? While our initial intentions were to steer clear of Cash Discounting, we recently figured out a way that agents can make a ton of money by targeting people already using Cash Discounting.
Adszy is a software platform that utilizes point of sale and payment data to create highly targeted audiences so merchants can run ads to seek out new customers and grow their business. 90% of all commerce still happens offline in a brick and mortar retail store. Unlike eCommerce giants who add a Google or Facebook Pixel to their website and can track how much revenue their ads are bringing in, brick and mortar merchants don’t have the same luxury. This disadvantage prevents retail store owners from understanding pertinent business metrics like Customer Acquisition Cost (CAC) and Lifetime Value of their Customers (LTV). After all, if you have no clue how much it cost to acquire a customer, is your marketing even relevant?
Adszy provides merchants indisputable evidence of ROI because we can actually track the interactions between a merchants online ads and in-store purchase. In short, we can show a retail store owner exactly how much revenue their online ads are bringing in through offline conversions. So long as they are positive on their return on ad spend (ROAS), they have no reason to ever leave us which is a beautiful thing.
The question still remains, How can you target merchants already using Cash Discounting?
We have found the best way to convert someone already passing 100% of their fees to their customers is actually quite simple. Just offer them something more valuable. Adszy doesn’t keep ANY of our clients ad spend meaning they can maximize their marketing budget when they run ads through our platform since 100% of their billing comes directly from Facebook and Instagram.
While many business owners love saving thousands of dollars when implementing Cash Discounting, they also love getting new customers and new revenues. By allocating some that savings into their marketing budget that wasn’t available prior to Cash Discounting, your merchants can put themselves on a path to sustainable business growth. Most small business owners aren’t allocating the 10% of revenue they should be spending on marketing and then wonder why they aren’t acquiring new customers.
We provide the perfect opportunity for ISO’s and Agents to target both merchants who are on the fence about Cash Discounting and merchants who have already adopted the program. Just think, if your merchants are worried about losing customers when they pass on the fees, you can feel 100% confident that they will be gaining more customers in the long haul.
To learn more about our ISO and Agent programs, email us at firstname.lastname@example.org or fill out the form below to have one of our reps reach out to you.