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CEO Sonny Gartin with Badgers Business Solutions holds a Tablet POS System

Cash Discount Program Backlash

In the Merchant Services World, in-experienced agents have hit the road pitching to business owners a program called Cash Discount. This means the consumer pays the credit card fees at check out rather than the business. Do you agree with this?? Comment below.

The Badgers do offer this, but have NOT pitched this to all businesses and there are many reasons why. Sonny Gartin CEO of Badgers Business Solutions says “Despite the fact that I, an agent, would pocket a lot more money, potentially triple my residual pay, I go into detailed conversation the PROS and the CONS of Cash Discount and let the business decide.” He continues to say “One day I will put a blog together with those pros and cons. Until then, just ask me and I will explain.

To not bore you, the reader, here are some things published from a merchant services industry publication “The Green Sheet” regarding a large company behind many merchant accounts, First Data Corp.

The headline reads:

“Breaking Industry News -Thursday, September 20, 2018 … Cash Discounting gains momentum, backlash story”

“The rising popularity of cash discounting programs is sparking lively debates among legal and payments analysts, most recently with reports that First Data Corp. has deleted a cash discount app from its Clover app marketplace.”

Agents at Badgers Business Solutions got notice that First Data acknowledged that some of its cash discount apps were non-compliant. “To protect you and your business from fines, we are removing apps that add surcharges to card transactions,” First Data wrote. “Effective immediately, … apps will no longer be available on your Clover devices and Clover App Market:….”

“First Data …..maintains it hasn’t closed the door on cash discounting…. ” “A ‘true cash discount’ does not add any fees or surcharges at the register; it can only provide a discount for cash and debit transactions.”

Sonny Gartin adds “What people don’t realize is the debit transactions are considered cash transactions since the money is coming out of a bank account. So is it right to charge the consumer who pays by debit card? The transaction fee a merchant is paying is considerably less on a debit card.”

Before you go sign up for a “Cash Discount” program because some guy/gal agent tells you it’s the next best thing, be sure you know all the facts.

If you are a local business owner in Southwest Florida with questions about credit card processing contact Sonny Gartin at 941-677-3891 or email

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