Payment Processing

Guide to Credit Card Processing for eCommerce

Understanding all the different facets of credit card processing might be challenging, especially if you’re just starting out.

You’re not alone. When selecting a payment gateway and understanding all the various processing fees, many business owners feel overwhelmed.

Even if you’ve been operating your e-commerce company for some time, keeping up with the most recent developments in payment processing is crucial.

A reliable payment partner is essential because fees and rules might change anytime.

This article will cover everything you need to know about processing credit card payments. Dive deep into payment gateways, the common payment processing fees, and how Von Payments can help your e-commerce business succeed.

How Does Credit Card Payment Processing Work?

A good grasp of how credit card payment processing works is essential if you want to accept this form of payment for your e-commerce business. The process of credit card processing companies can seem complicated on the surface, but it doesn’t have to be.

The first step for any e-commerce company is to get a merchant account—a bank account that enables you to accept online payments from customers using their debit or credit cards.

When applying for a merchant account, you must provide information such as the following:

  • Your business name and address
  • What type of goods or services you’re selling
  • Your estimated monthly sales volume
  • Other details like fees, rates, and terms associated with your account

Once approved, the acquiring bank will set up your merchant account—enabling you to authorize, capture and deposit online and mobile payments into your designated bank account. 

This is done by connecting all these components using the right technology, such as payment gateways, virtual terminals, and secure checkout solutions.

When customers enter their payment details at checkout on e-commerce platforms or mobile apps, the data is sent from the gateway or terminal directly to the customer’s issuing bank, where it is checked for authenticity.

The payment processor executes the transaction and transfers funds into your designated bank account.

To ensure that payments are processed quickly and efficiently, merchants must adhere to specific standards such as Payment Card Industry or PCI compliance guidelines. 

These set rules around storing and handling customers’ data and ensure end-to-end encryption throughout the payment process.

Using a Payment Gateway to Help with Credit Card Processing

A payment gateway is an added layer of security and helps merchants process credit card payments efficiently.

The payment gateway serves as an intermediary between the customer and the e-commerce store, ensuring safe and reliable online transactions.

A gateway allows customers to make secure e-commerce payments directly on your online store without being redirected to another page; customers don’t have to leave your site to complete their purchases.

Typically, when a customer wants to purchase something online, the payment gateway verifies their identity and checks if their credit card information is correct. It also collects data from the issuing bank to determine whether the transaction is approved or declined.

Furthermore, it encrypts sensitive data such as credit card numbers and personal information for extra security measures. 

As a result of these highly secure practices, customers can feel safe when making online purchases on websites that use a payment gateway for their transactions.

A payment gateway provides an invaluable asset for online stores by cutting down on fraud risk and increasing consumer confidence in your business.

Common Credit Card Processing Fees

When processing payments with credit cards, there are various fees that businesses should be aware of. These fees can vary depending on the payment processor and the type of services used.

Standard fees for credit card processing include transaction fees, gateway fees, interchange rates, statement fees, and assessment fees. Other less common fees may also include setup fees, termination fees/cancellation fees, etc.

Transaction Fees

Transaction fees are the most common fee associated with credit card processing.

Usually, a flat fee per transaction or interchange plus pricing is applied for each sale processed through the payment processor. This fee covers securely transferring funds from the customer’s bank account to the vendor’s account.

Transaction fees typically range from 0%–5% depending on the processor and services used.

Gateway Fees

Gateway fees are typically charged when using an external payment gateway such as PayPal or Stripe to process payments online.

Gateway fees are usually calculated as a flat monthly rate plus a small percentage per transaction and typically range from 1%–3.5%.

Interchange Rates

Interchange rates refer to what is known as “swipe” or “card-present” transactions and involve customers swiping their cards at point–of–sale terminals (POS).

These are standard payment processing charges assessed by a merchant’s chosen processor whenever they accept payments via debit or credit cards.

Visa, Mastercard, and other credit card companies set interchange fees. They typically range from 1–3.5% of each completed transaction, specifically as follows:

  • Visa: 1.4% to 2.5% for credit cards and .05% for debit cards
  • MasterCard: 1.5% to 2.6% for credit cards and .05% for debit cards
  • American Express: 2.3% to 3.5% for credit cards and .05% for debit cards
  • Discover: 1.55% to 2.5% for credit cards and .05% for debit cards

Statement Fees

Statement Fees are charges that may appear on your monthly statement for each month you accept payments via credit card.

Many credit card processors offer discounts if you sign up for auto-billing or commit to transactions above a certain amount each month. However, some processors may still charge statement fees regardless if these conditions are met.

Statement fees usually range anywhere from $5–$30/month, depending on the services used.

Assessment Fees

Assessment fees refer to extra charges imposed by card issuers that cover costs associated with maintaining fraud prevention systems, processing card networks, etc.

They generally amount to around 0.11%–0.13% per transaction, regardless of whether it was conducted online (card-not-present) or by swiping at POS terminals in-store.

Chargeback Fees

Chargeback fees are another type of fee that businesses may encounter when using a credit card processor. 

This fee is charged to merchants when customers dispute an unauthorized or fraudulent transaction on their statement and request a refund from their credit card issuer.

The chargeback fee covers any associated costs incurred by the merchant’s processor in handling this dispute process and typically ranges from $15-$50, depending on the issuing bank or financial institution. 

Authorization Fees

Authorization fees cover any expenses related to verifying a customer’s identity information when making purchases with credit cards or ACH payments via automated clearing house networks like PayPal or Venmo.

Authorization fees generally range between $0.05–$0.20 per transaction, depending on which service provider is used for authentication purposes.

Some providers charge even higher rates for businesses operating in more high-risk industries, such as gaming or adult entertainment businesses.

Some processors may also assess additional flat-rate authorization fees if specific criteria, like online purchases over a certain value amount, are met by customers making transactions with their cards at point-of-sale locations. 

Subscription Fees

Subscription fees are typically associated with payment gateways or merchant accounts that require a business to sign up for an ongoing subscription agreement to access its services.

Subscription fees vary depending on the service provider, but they usually range from $20–$200 monthly fees depending on features available and the types of transactions being processed.

How Much are Payment Processing Fees?

Depending on the payment processor they choose, e-commerce credit card processing can come with various fees.


Stripe charges a 2.9% + $0.30 fee per successful credit card charge. This fee applies to online and in-person transactions for Visa, Mastercard, American Express, Discover, and other supported payment options.

Stripe also charges a 1.5% fee for international payments such as Google Pay or Apple Pay.


PayPal has similar payment processing fees with a couple of differences. They charge a flat 2.99% + $0.49 fixed fee per successful credit card charge with an additional 1.5% per transaction when using PayPal’s currency conversion service (if applicable).

There may also be other costs when using PayPal’s merchant services, like accepting QR code transactions or Venmo payments.


Square offers a competitive pricing structure with their flat 2.6% + $0.10 fee per successful credit card charge plus an additional 1.5% if you use their instant transfers functionality—allowing merchants to receive funds within minutes instead of days.


Shopify offers tiered pricing models that vary based on what features you need from the platform and what type of product you’re selling (eCommerce store or retail shop).

The basic plan (which is ideal for small businesses or those with low volume sales)  starts at 2.9% + $0.30 fee per successful credit card charge along with an additional 0-2% depending on whether your customers check out through Shopify. 

Payments or another third-party processor such as Stripe or Paypal (note: this does not apply for brick-and-mortar stores).

Higher-tier plans offer lower rates. They go from 0% to 1%, which is better for high-volume e-commerce businesses that process thousands of orders each month and want to save on transaction costs.

Von Payments Can Help With Credit Card Processing for Your e-Commerce Businesses

Credit card processing services include authorizing, clearing, and settling payments, which are all crucial elements of running a successful online business.

If your business needs a reliable way to process credit cards, you should consider partnering with Von Payments for merchant accounts and streamlined payment processing services.

Von Payments offers PCI-compliant payment gateways and uses tokenization technology to ensure secure credit card transactions. Von Payments also provides fraud prevention tools to help protect businesses from unwanted chargebacks or fraudulent activity.

Our payment solutions are designed to be user-friendly, with easy API integrations into existing payment systems so your business can run seamlessly and without extra hidden fees.

With these features in mind, it’s no surprise that many businesses trust Von Payments as their merchant services provider—with reliable credit card processing solutions for eCommerce stores.

Contact us today to learn more.


Chargeback Management

What is a Chargeback Fee?

Chargebacks are a significant issue for high-risk businesses. 

A single chargeback can cost you time, money, and energy you don’t want to spend. Not to mention that it can often lead to frozen merchant bank accounts or closures—causing significant administrative burdens for your business.

Merchants must understand what chargeback fees are, what causes them, and the steps to minimize losses incurred.

This article will discuss all you need to know about chargeback fees, the different types of chargebacks, and how to prevent them from occurring in the first place.

What Are Chargeback Fees and How Do They Work?

A chargeback fee is a penalty or fee imposed by credit card companies on merchants who process transactions that are eventually deemed fraudulent.

According to a TransUnion report, an alarming 25% surge in online fraud attempts has been recorded across the US.

Chargeback fees are a significant issue for e-commerce businesses as they can significantly reduce profits and cause unnecessary headaches.

The chargeback process starts when a customer disputes a transaction with their credit card issuer, requesting a refund. This is known as a chargeback request.

Once this happens, the merchant loses any money earned from that sale and is assessed a chargeback fee.

Different Types of Chargebacks

Chargebacks come in several forms, including friendly fraud, true fraud, merchant errors, and authorization discrepancies.

  • Friendly chargeback fraud occurs when customers reverse charges due to buyer’s remorse or misunderstanding about what they purchased.
  • True fraud is when someone steals another person’s credit card information or uses false information while purchasing without authorization from either party.
  • Merchant errors involve incorrect billing information or mistakes made during shipping orders.
  • Authorization discrepancies occur when there is a difference between what was authorized by the issuing bank and what was charged by the merchant.

Types of Fees Included in a Chargeback

The chargeback cost is typically composed of the following: a transaction fee, an acquiring bank fee, marketing and acquisition fees, and business operating expenses.

Transaction Fees

This is the fee typically charged by the merchant’s payment processor for executing the transaction. These fees are not refundable. Pricing varies depending on the card network and the country in which it was issued.

Typically, transaction fees range from 0-5% of revenues.  

Acquiring Bank Fee

This is a fee set by the credit card company that must be paid to them for each chargeback issued. These processing fees vary depending on the card used and can range from a few dollars to hundreds of dollars per transaction.

Business Operation Expenses

This is the cost associated with fulfilling and delivering the product or service to the customerincluding packing, shipping, and other product delivery costsand other miscellaneous expenses. 

Marketing Costs

These are additional fees charged by the credit card company for customer acquisition and promotional campaigns. These costs—typically 30-40% of merchants’ revenue—vary depending on the type and amount of advertising used to obtain customers.

Types of Businesses More Likely to Be Affected By Chargeback Fees

Some types of businesses are more at risk of chargeback fees than others.

Non-traditional and high-risk merchants may be more prone to chargebacks, such as the following:

  • Adult and dating
  • Auto parts and accessories
  • CBD
  • Debt consolidation
  • Direct marketing and eCommerce
  • Gaming
  • Legal services and law firms
  • Membership and wellness
  • Nutraceuticals
  • Property management
  • Subscription
  • Timeshare
  • Trials

How Much is a Chargeback Fee?

The chargeback fees vary depending on the type of card used to purchase and your agreement with the acquirer. It often ranges from $25-$1000 for each chargeback on top of the purchase amount.

High-risk businesses typically have even higher chargeback fees.

If companies add up all the hidden and indirect fees connected with chargebacks, they can often incur more than double the original transaction amount.

Can You Prevent Chargeback Fees?

Practicing simple strategies can quickly reduce the likelihood of costly chargeback fees for your business.

Establish Exchange and Return Policies

Return, exchange, and refund policies should be outlined clearly on your website to provide transparency for cardholders. This can help reduce the number of chargebacks due to buyer’s remorse, as customers know exactly what is expected of them when making a purchase.

Provide Quality Customer Service

People may dispute charges if they feel that their customer service experience was inadequate. Ensure customers receive the best possible experience and provide helpful information, support, and follow-ups when necessary.

Manage your customers’ expectations through clear and accurate product descriptions and delivery times. This can help reduce cases of friendly fraud due to misunderstandings about product quality or shipment delays.

Use Chargeback Fee Prevention Tools

Implementing chargeback fee prevention tools can help reduce your chances of being hit with expensive fees due to fraudulent card transactions or merchant errors. 

Solutions such as 3D Secure authentication and tokenization can help keep customer data safe and secure.

Consider using fraud prevention tools such as 3D Secure and Verified by Visa to help reduce the chances of fraud occurring on their site.

Monitor Suspicious Activity

Businesses can reduce their exposure to chargebacks by monitoring suspicious activity on their sites. These include multiple purchases using different cards but with similar shipping addresses.

Proper documentation around transactions should also be kept to defend against false claims from customers.

Get Chargeback Management with Von Payments 

Understanding how chargeback fees work, their impact on your business, and preventing them can be daunting. As a business owner, you must know the strategies and solutions available to protect your business from chargebacks.

Von Payments is a high-risk payment processor that offers streamlined chargeback management solutions to help you reduce the risk of fraudulent activity or accidental transactions.

Our merchant services include a chargeback monitoring program, providing instant alerts on suspicious activity, tracking chargeback dispute statuses, and making doing business quick and secure.

With Von Payments’ comprehensive merchant account services and reporting features, your business can reduce the time it takes to manage chargebacks while reducing losses due to fraud or other mistakes. 

Save money on processing fees and enjoy secure payment processing for your high-risk business. Contact us today and discover how Von Payments can assist you in managing the hassle of chargebacks.


Payment Processing

Payment Processing Services: Choosing the Right One for Your Business

What is a Payment Processing System?

Payment processors authenticate the credit and debit card details of your customer through the credit card network and deposit the requested amount into your merchant account. Modern payment processors support a variety of payment methods which include:

  • Online payments
  • In-person payments
  • Debit card and credit card payments
  • Bank account transfers
  • Payment from third-party apps like PayPal, Stripe, etc.
  • …and more.

A payment processing system describes the hardware and software infrastructure of payment processors that serve as payment gateways between consumers and business owners.

Payment processing services are companies or providers that build such systems.

Whether you are running an eCommerce or retail business, choosing the right provider is crucial for improving the cash flow of your business.

But with so many options available, how do you pick the right one?

In this article, you’ll learn the seven critical factors to consider before selecting a payment processing service provider for your business.

7 Factors to Consider Choosing a Payment Processor

Consider all the factors below when choosing a payment processor to maximize your bottom line and ensure your customers have the best payment experience while doing business with you.

1. Merchant Services

Merchant services is essentially the system that handles the credit card payments of your business. It is also known as credit card processing. It includes everything from obtaining the pricing details of the business to the authentication of payment information to transfer funds.

Choosing the right credit card processing service provider for your established or small business is crucial because:

  1. You can get more customers by offering more payment options such as contactless payments, Apple Pay, Google Pay, and digital wallets.
  2. Tracking and managing finances will be easy even for small businesses and startups as they will provide you with an overview of your cash flow.
  3. These payment processing services can easily accommodate your growing business needs while ensuring customer satisfaction.

Von Payments provides scalable and transparent merchant services for all kinds of businesses including eCommerce and retail.

2. Pricing

One of the main drawbacks of credit and debit card payment options is transaction fees. Monthly fees, processing fees, chargeback fees, and interchange fees are just a few of them. The three important fees charged by Visa and Mastercard are displayed on the diagram below.

credit card fees


These fees necessitate a change in your business’s pricing structure as you have to consider these additional fees and taxes.

Thus, you need to choose a payment processing service that charges the least additional fees from you and your customers.

Von Payments is a payment processing company that stands out when it comes to minimizing these hidden fees. Even if you have a high-risk non-traditional business, you will incur the least transaction fees to maximize your revenue. This is done by passing off transaction fees to the customer, so your business does not have to pay more when customers pay with cards.

One of the ways to eliminate transaction fees is through cash discounts. This is where your customers can choose to pay through cash or through credit card with extra fees. It doesn’t cost your business anything as customers are covering additional fees, so you gain back all your profits.

3. Payment Types

The payment processing company of your choice should allow you to get paid in every way whether your customers prefer cashless transactions or in-person payments. Although online payments are provided by every payment processing company, not all of them accept payments via third-party tools like Stripe and PayPal.

Von Payments made a leap in this area to ensure both retailers and eCommerce businesses can process transactions in high volume through all channels.

The robust processing solutions support all card networks including Visa, Mastercard, and Discover for online payments and also allow businesses to give their customers the freedom of paying through third-party apps like Stripe and Paypal with no additional cost.

4. Point-of-sale (POS) Hardware

Point-of-sale (POS) hardware is the physical device that authenticates and processes payments during checkout. Modern POS hardware lets customers make payments to merchant accounts through a variety of in-store payment methods.

Choosing the right service provider is crucial as it decides what payment options your in-store shoppers will have. There are many kinds of POS systems ranging from mobile devices to desktops.

POS systems


Von Payments has partnered with Clover to deliver a customizable POS system to merchants which does it all: invoicing, debit and credit card processing, virtual terminals, and more. Clover’s payment processing solutions seamlessly integrate with Von Payments which allows you to monitor your invoicing and finances on your smartphone as well through our app.

5. Card Readers and Apps

Having a card reader in-store helps improve the customer experience in two ways. One, it is a secure way to pay for customers as there is no contact except for the ‘tap’. Two, it is quick. These two reasons make it a great option for small businesses that serve customers in-store.

Clover’s aforementioned POS allows your customers to make payments to your merchant account through all kinds of cards with a simple tap while checking out with their shopping carts.

However, growing businesses with both in-store and online operations might find it challenging to comprehensively track all their sales. Clover also has a solution for that. Its native mobile app’s dashboard keeps you updated about cash, online, debit, and credit card transactions made by your business.

6. Deposit Timing

Deposit timing refers to the amount of time between the moment a payment is registered to the moment you can withdraw the cash. This is crucial for small businesses as they need a steady cash flow to meet the overhead costs and keep things running.

Most payment processing companies have a deposit timing of a few business days which can make things difficult for non-traditional and high-risk businesses.

Von Payments allows you to get cash from your merchant bank account the very next day of the payments. Furthermore, you can get cash deposited directly to your bank account (also known as ACH deposits).

7. Contract Periods

The contract period is the mutually agreed-upon time duration for which you have decided to use a payment processing service. Generally, budding retail and eCommerce businesses prefer short contract periods because:

  1. They want to avoid cancellation and early termination fees.
  2. They don’t want to keep paying the monthly charges during the off-season.

Von Payments simplifies this decision by completely eliminating the cancellation fees and the traditional monthly-rental pricing model. You will be only charged when you process a payment — free cancelation, no early termination fees.

Accept Cash and Credit Card Payments with Von Payments Solutions

Payment processing services help businesses run the most important processes?invoicing, processing purchases, authenticating payments, and validating refunds.

While choosing a payment processing solution, it is crucial to ensure that it will cost you less and give your customers the ability to pay however they want (paying only a small fee with credit card transactions) while incorporating your unique business needs.

Von Payments provides a zero-fee payment processing solution for businesses of all sizes in multiple sectors to deliver just that. We also support high-risk non-traditional businesses to get direct ACH deposits from their customers for any payment method.

Get in touch with us and we will deliver a customized payment processing solution for your business.

Payment Processing

The Ins and Outs of Credit Card Processing

What is Credit Card Processing?

Credit card processing is a service through which businesses accept payments from their customers through credit cards.

27% of transactions in e-commerce and in-person checkout in retail are completed via credit card payments, making it one of the most popular payment methods.

Credit card payments are a preferred contactless payment method as they enable consumers to get the most out of their bank accounts via reward points, cashback, etc.

In this article, you’ll learn how these payments work, the various fees involved in a transaction, credit card processing pricing, and how you should pick the right credit card processing and point-of-sale (POS) system.

How Does Credit Card Processing Work?

Credit card transactions between the cardholder and businesses contain the following moving parts:

  • Consumer: The cardholder or the customer
  • Merchant: The business owners
  • Payment Gateway: The mechanism which authorizes the checkout transaction during credit card processing
  • Credit Card Processor: The virtual terminal, credit card reader, or payment processor which is the medium between the consumer and the merchant
  • Card Network: It is a system that enables and facilitates credit card payments during e-commerce transactions
  • Issuing Bank: The bank of the cardholder
  • Acquiring Bank: The bank with the merchant account

The credit card payment processing is shown in the image below:


Before choosing a credit card processing company, let’s understand the transaction fees during the payment processing of credit cards.

Pricing for Credit Card Processing

Credit card processing fees should be taken into consideration before choosing a credit card processing company. These are added to the bill during invoicing and are popularly known as “hidden fees”. Below are the most common types of such fees:

  • Interchange fee: Also known as interchange-plus pricing, these make up most of the transaction fees. This fee is paid between banks to process payments. In the US, the interchange fees are about 2% of the total transaction amount.
  • Service fee: This is charged by the business and covers customer support, transactions, and business development. The service fees charged depend on the business or service provider and the industry.
  • Processing fee: It is charged by your bank for the privilege of using credit cards. Companies charge a flat rate per transaction, but it usually varies.
  • PCI compliance fee: It is charged by your payment processor or virtual terminal to ensure the merchant is compliant with the PCI DSS standards.
  • Chargeback fee: This credit card processing fee is charged by the bank from the merchant account while reimbursing the customer for a fraudulent transaction. Merchants can also dispute a chargeback fee which ensures small businesses aren’t taken advantage of.


The inclusion of all the above kinds of fees in the credit card pricing model decreases the profit of the merchant. As a result, small business owners prefer to offer and promote cash payment, or by passing on the processing fee to customers in exchange for their merchant services.

Choosing a Credit Card Processing Company

Credit card processors receive and validate the cardholder’s information and the transaction details to ensure the credit card transactions are secure. These processors accept the details through the virtual terminal and relay them to credit card net card networks for payment processing.

They protect the data of the consumer and transfer the accurate amount to the merchant bank.

Credit card processing companies, like MasterCard and Visa, build devices and systems to facilitate these processing services. 

Choosing the right company will have the following benefits:

  1. Fraud protection and security: As a business owner, it is not just your responsibility to accept payments from verified sources, but also to protect your customers from financial fraud. A good payment processor will send funds to your merchant account while decreasing the risk associated with these transactions.
  2. Merchant services: This is about the convenience offered by their solution. For instance, the payment processing solution should allow you to offer multiple payment options to your consumers including debit cards, in-person cash payments, and mobile payments. Another factor you should consider is hidden fees and monthly fees.
  3. Customer support: Small businesses, for example, can find it difficult to rely on credit card processors that take a few business days to get their tickets resolved. They need cash as soon as possible to repay the overhead costs. A credit card processing company should ensure smooth cash flow through your business as per your pricing model.

Von Payments, one of the best credit card processing companies, provides all of the above to startups and established businesses across a wide range of industries.

We provide credit card transaction processing services to every business from low to high-risk non-traditional verticals. With Von Payments, you can accept payments from your customers via mobile wallets, Google Pay, Apple Pay, debit cards, credit cards, and more. You can accept credit card payments from leading providers such as Visa, MasterCard, American Express, etc. Any and all processing fees would be passed on to the customer, which is a strong benefit for merchants.

Furthermore, we will assist you through every step to give you the best merchant services by assigning a dedicated account manager.

Finding the Right Point-of-Sale (POS) System

A point-of-sale system (POS system) refers to the hardware and software that accepts payments from your customers during shopping cart checkout. A common example is the cash register. However, the POS system has come a long way since.


Keep the following points in mind while choosing a POS system:

  1. Customer experience: It should manage and store customers’ data securely and incur minimal transaction fees. They should also be allowed to make online payments and make payments through third-party portals like Stripe.
  2. Adaptability: If you are accepting payments through certain means, your point-of-sale system should incorporate that seamlessly. You shouldn’t have to change how you interact with your consumers to make a payment service system work even if you are a non-traditional, high-risk business.
  3. Scalability: Your POS system should be able to address the growing needs of your business. For instance, introducing a mobile device to improve the in-store experience for your customers should be easy.
  4. Affordable: Interchange-plus pricing, monthly subscription processing fees, and taxes per transaction make many POS systems an unfriendly option for low and high-risk businesses alike. Make sure the pricing model of the POS system doesn’t drain your revenue significantly.

Now that you know what you should look for in a credit card processing company and POS system for your business, it is time to choose the right one.

Choose Von Payments for Zero Fee Payment Processing

Credit card payments are a popular method of completing e-commerce and retail transactions. The payments are authenticated through credit card networks which charge interchange fees and taxes to transfer the funds. However, these extra fees can make them undesirable for your business.

This is where you must choose the best credit card processing company which is secure, adaptive, transparent, easy to use, and scalable as per your needs.

Von Payments’ zero-fee processing platform maximizes your bottom line by passing off transaction fees incurred in processing credit cards to your customers.

Your customers can either pay by cash, which will be at a discounted rate, or by credit card where the customer has to pay the convenience fees.

Our platform is secure, takes minutes to set up and run, adaptive, scalable, and compliant with all the latest regulations in all 50 states.

Contact us today and we will get you started in no time.

Payment Processing

Dual Pricing and the Benefits for Your Business

What is Dual Pricing?

Dual pricing refers to a billing strategy primarily used by retailers where they charge their customers differently based on their method of payment. The two payment methods (hence dual) are credit cards and cash.

If the customer prefers to pay via credit cards, they are charged extra for the processing fees that the business has to bear for providing merchant services. The customers pay the additional surcharges in exchange for rewards from their banks.

On the other hand, customers can enjoy a cash discount if they choose to pay via cash.

With the dual pricing definition clear, in this article, let’s take a look at the advantages of a dual pricing program for businesses and customers which will help you improve your business’ pricing model.

Key Benefits of Choosing Dual Pricing

Although the dual pricing model was initially used by gas stations, its benefits encouraged businesses in different domains to follow suit. There are five areas in which a dual pricing system will be beneficial for your business, regardless of its size and industry.

Benefits to businesses

Most businesses add surcharges to invoices at checkout if their customer decides to access their merchant services. Unsurprisingly, this upsets customers as this means they have to pay more than they initially thought.

As a result, customers may find it difficult to trust these businesses and this, in turn, affects their retention rates and lifetime value.

The alternative here is that the business bears the transaction costs each time a customer swipes their credit card on the point-of-sale (POS) system. However, this decreases the overall profits which can hurt business growth in the long run.

A dual pricing strategy helps you regain your edge against aggressive competitors by making your products or services accessible at lower prices.

Benefits to consumers

Your customers don’t want any surprises when they are paying a bill (unless it is a discount). Furthermore, consumers also want to pay in their preferred method.

Dual pricing achieves that in two ways. One, it gives your consumers cash discounts, which is a pleasant surprise. Two, it charges the transaction costs to your consumers in exchange for rewards from their bank such as coupons, points, and discounts.

Consequently, you can avoid setting higher prices to cover the transaction costs for your merchant services when they pay with cash. This increases their satisfaction level leading to higher lifetime values.

Eliminate all processing fees

Your bank will charge you transaction and PCI compliance fees for providing your customers with merchant services and maintaining the credit card network. Here are the most common types of additional fees you might have to pay:

  1. Interchange fee: This fee directly goes to maintaining and improving the credit card network that facilitates secure transactions between you and your consumers. The interchange fee is capped at 2.4% and you have to disclose this before the transaction.
  2. POS terminal fees: Your point-of-sale (POS) service provider charges you every time their services are availed by you to process payments via credit and debit cards. These fees could be a lot based on the nature it is levied.
  3. Foreign currency conversion fee: If you are serving customers across international borders, your bank will deduct the foreign currency conversion fee from your merchant account as taxes.
  4. Chargeback fee: You will have to pay a chargeback fee to your bank when your customer disputes a payment they made via credit card. It usually results when the expectations of the customer aren’t met.

The above fees are often reflected as surcharges on the itemized invoice your customer receives which can lead to a bad experience.

Dual pricing takes care of that by charging different prices for your products and/or services to your customers based on their payment method. They will enjoy a cash discount if they choose to pay via cash and will get rewards from their bank if they choose to pay by credit card (even though they will be paying the processing fees associated with card payments).

Applicable to all types of businesses

Most businesses don’t even consider a dual pricing strategy because they are under the assumption that it is not feasible for their business. Growing companies, high-risk businesses, and eCommerce businesses in non-traditional domains like CBD and gambling fall in this category.

Even if they do, it is hard for them to find a trustable payment solution and a POS system that will allow them to execute a consumer-friendly but profitable dual pricing program

Fortunately, both the above things are myths. No matter which industry you are in, the risks associated with your business, and the phase of growth you are presently experiencing, there is a solution.

Von Payments offers zero-fee payment processing solutions for businesses of all sizes and in different markets.


No Worry Over Rising Cost of Accepting Payments

There are two reasons why you are paying more than you have to while accepting payments from your customers:


  1. Individual transaction fees: We mentioned briefly above how you are being charged by your bank, POS system provider, and payment gateway partner every time you are paid via credit cards. This can add up quickly during busy seasons, for example, during the holidays.
  2. Fixed service charges: This is a fixed flat rate you have to pay, either monthly or annually for using the financial tools. These could be painful to pay during slow seasons and deactivating them temporarily is impractical because it takes time and effort which can be invested in things with higher ROI.


After the second step in the image below, you are charged on every step.



The individual transaction fees and fixed service charges put a lot of businesses between a rock and hard place where they have to constantly worry about the rising costs of accepting payments. These fees keep on increasing as you accept payments in more methods.

The ideal solution for this business is a payment processing solution that doesn’t charge for every transaction and has the least fixed service charges. Furthermore, businesses benefit by being able to pass on these transaction fees to their customers.

The good news is, such a solution exists.

Slash Processing Costs with Von Payments

Dual pricing allows businesses to charge their customers differently on the basis of their chosen payment method. Consumers can enjoy a cash discount by making arrangements to pay with cash to avoid taking on additional fees with credit card payments.

This pricing strategy is beneficial for businesses as it passes off various transaction fees and taxes to the customer.

The challenge that businesses might face while adopting this pricing plan is finding a suitable payment processor and/or a POS system. Particularly non-traditional high-risk businesses struggle while searching for a suitable solution.

Until now.

Von Payments offers a zero-cost processing program that enables businesses of all sizes from any sector to adopt a user-friendly and profitable dual pricing plan. Not only can you provide multiple payment options to your customers for zero additional fees, but you can also withdraw cash from your bank within 24 hours to receive payments.

Contact us and we will tailor the perfect payment processing solution for your business.


Selling CBD On Shopify: Your Comprehensive Guide

In the last few years, Cannabidiol (CBD) has shown tremendous promise for its health benefits. But, at the same time, it is fraught with legal complications.

CBD products are not yet approved by the FDA and they are regulated by both federal and state laws. As a result, many banks, payment gateways, and payment processing companies categorize CBD sales as high-risk transactions and don’t support them.

While the CBD market is complex and regulations are still evolving, it is a lucrative business opportunity for online vendors. It’s estimated to represent a $16 billion opportunity by 2025. In 2022 alone, some estimates say that online sales of CBD reached about $3 billion. 

Thankfully, there are some payment processing companies, such as Von Payments, who provide high-risk processing solutions for small and mid-sized businesses in non-traditional verticals—such as selling CBD.

In this article, we discuss all that you need to know about selling CBD on Shopify and how to acquire a high-risk merchant account.

What Is CBD?

CBD is a derivative of the Cannabis plant. But it can also be derived from hemp—a subtype of the Cannabis Sativa plant species—which produces a range of cannabinoids. Both cannabis and hemp contain a psychoactive chemical called tetrahydrocannabinol (THC), but hemp contains significantly less THC and makes it an uncontrolled substance.


By US federal law, CBD derived from hemp containing less than 0.3% THC can be sold legally on online platforms and in stores as it’s a non-addictive and non-psychotropic substance. 

CBD derived from cannabis is considered a Schedule 1 substance and is illegal to sell, so it’s important to know the source of CBD if you want to sell it online.


CBD is now widely acknowledged as useful in treating major ailments and illnesses such as depression, cancer, epilepsy, and more. However, it has not yet received FDA approval, and scientists are still researching the veracity of its medicinal benefits. 


Can I Sell CBD Online?

The 2018 Farm Bill authorized the production of hemp and removed hemp from the schedule of Controlled Substances. So, in short, yes, CBD derived from hemp is permitted to be sold online.

First, however, you must find the right platform that gives you a systematic framework to safely sell CBD products while complying with all the associated regulations.

Shopify has stringent yet vendor-friendly policies for selling hemp-derived (not marijuana-derived) CBD products online. 

However, you cannot currently use Shopify Payments (Shopify’s payment gateway) to process CBD sale transactions online. Instead, Shopify recommends integrating a third-party CBD merchant account into your CBD e-commerce store.

But first, let’s look at what you need to do to start selling CBD on Shopify.


What Do I Need To Sell CBD On Shopify?

While Shopify supports CBD stores on their e-commerce platform, it’s recommended that you consult a legal expert to verify federal, state, and local laws for the sale of hemp-related products and follow updates from the FDA.

For example, some states have laws preventing people under 18 or 21 years from using or buying CBD products. In that case, you’ll need to verify that people purchasing CBD products meet the legal age requirements for that state.

Before you start your Shopify store, ensure you have the right license your local government body mandates to allow you to sell CBD online.

Also, your state may have different laws for ingestible CBD and topical CBD products, so get the right advice from an expert before you finalize which CBD products you want to sell.


Shopify CBD Payment Processor

CBD sales are considered high-risk transactions. The FDA is still developing a regulatory framework for the CBD industry. As a result, many payment processors don’t support CBD sellers. 

So, your first job will be finding a high-risk payments processing company to support your Shopify CBD store.

A payment processor mediates between you (the merchant) and the financial institutions to ensure you get paid on time by facilitating funds transfer. 

Some payment processing companies, like Von Payments, also provide equipment for accepting card payments, fraud-detection solutions, PCI compliance, and other related services.

Within a few seconds of an online transaction, the payment processor forwards the payment details to the card’s issuing bank or card association for verification and initiates anti-fraud checks against the transaction.

Payment processors play an important role in securing online payments. They protect the merchant’s interest by ensuring the buyer’s bank has adequate funds or the card account has a sufficient credit line. At the same time, they also ensure that the buyer’s sensitive payment information is safe from malicious actors.

That’s why it is important to choose an experienced payment processor that specializes in high-risk transactions. 

Shopify CBD Policy

It’s crucial for every seller to carefully understand and abide by Shopify’s terms and conditions for selling hemp-related CBD products online.

The process should be fairly straightforward as they align closely with federal and state guidelines and regulations. Any Shopify store that violates FDA guidelines will likely be shut down or frozen.

  • If you aren’t already a Shopify store owner, the first step is creating a shop for your online business.
  • Next, while you are signed in to your Shopify accounts, complete and submit the Attestation for the Sale of Hemp and Hemp-Derived Products form.
  • Once your store is automatically attested, select a third-party payment gateway—such as DigiPay or Bankful—that supports Shopify CBD transactions.

As a note, always remember to keep a close eye on FDA updates on CBD-related regulations during your selling. 

 Apply For A CBD Merchant Account

A CBD merchant account allows retailers to accept credit card payments against CBD sales. You will need to use payment processing services from a high-risk merchant processing provider—such as Von Payments—to start a CBD merchant account.

We provide comprehensive, full-suite payment solutions to maximize your CBD business potential. 

We also offer services such as 3DS, RDR, Chargeback, and PCI solutions that will mitigate risks and ensure the merchant accounts stay healthy and compliant for the lifetime of our clients’ processing needs.

As your partners in payment processing, we aim to enhance all aspects of your processing capabilities so you can focus on scaling your successful business.

Apply for a Von Payments account to get the following:

  • Quick and easy application process
  • 24-48 hours approval
  • Zero-Fee Processing Program—convert processing fees into a convenience charge paid by your customers
  • Modern safeguards and fraud detection systems
  • Prevent chargebacks at source to maximize 
  • Extensive reporting capabilities

And much more. Connect with us to learn more about how to apply for your CBD merchant account today!


Q: What types of CBD can I sell on Shopify?

You can sell hemp-derived CBD products in various forms:

  • CBD oil
  • Vape oil
  • Topical creams, lotions, balms, shampoos, and other skin and hair products
  • Edibles include CBD-infused beverages, gummies or lollipops, sublingual sprays, and tinctures.
  • Supplements in the form of capsules and soft gels

Q. Why are hemp-derived CBD products considered high-risk?

Many people think CBD is high-risk because of the complex laws guiding its sale and purchase. However, many banking institutions and payment processors consider CBD transactions as high-risk due to various factors. These include high chargebacks, frequent refunds, large-ticket pricing, or because the acquiring bank deems them as high-risk. 


Find Your Solution With Von Payments

High-risk credit card processing is necessary for merchants who want to seize the business opportunity offered by the growing popularity of hemp-derived CBD products. While traditional gateways and processors are reluctant to work with CBD merchant accounts, Von Payments already specializes in high-risk payment processing.

You can count on us to provide expertise on all aspects of starting your CBD merchant account and accepting payments online.

At Von Payments, security is our topmost priority. We work with cutting-edge encryption technology, advanced security, and fraud prevention measures.

Get your Shopify CBD online store off the ground with a CBD Merchant account and payment processing from Von Payments.

Our dedicated team is readily available to address any questions or concerns. Connect with us to start your CBD merchant account today!


Chargeback Management

Everything You Need to Know About Chargeback Management

Chargeback occurs when cardholders have the option of disputing a transaction with their card issuer and requesting that it be canceled, commonly referred to as a “chargeback.”

Despite being a valuable tool for consumers to protect themselves against fraudulent charges, chargebacks can create significant headaches—and administrative strain for businesses as resolution proceedings often take several months.

Businesses recognize this and have implemented chargeback management strategies to mitigate and stop chargebacks. 

In a study conducted by Midigator, an Equifax company, 40% of merchants employed various chargeback prevention solutions like Rapid Dispute Resolution (RDR).

The chargeback process can be tiresome and lengthy, not to mention a high risk of financial loss. Once a customer initiates the process, their card issuer will freeze funds from that transaction until all parties agree on its status. And if the issuing bank decides to rule against you, you will NOT be able to get your money back.

Ensuring your guard is up against erroneous or fraudulently issued disputes is of utmost importance to avoid financial losses and administrative delays.

This article will show you how a solid chargeback management system offers a fast, easy, and affordable way to manage and fight chargebacks and streamline the resolution process.

What Is Chargeback Management?

Chargeback management is a term used in business to describe the various activities and processes involved in handling customers’ requests for the reversal of charges or payments to their debit or credit cards. It usually occurs when customers believe a merchant has wronged them—for instance, if they have not received the goods or services they ordered or were overcharged.

Chargeback management encompasses all aspects of dealing with chargebacks from prevention to resolution. It includes card processing, issuing refunds, communicating with customers and merchants, and managing chargeback disputes.

Chargeback management aims to ensure that customers receive the refund they are entitled to and that merchants are not unfairly penalized. It also helps protect a company’s reputation by establishing strong relationships between customers and merchants and creating an environment that encourages excellent merchant practices.

High-Risk Businesses Are More Prone to Chargebacks

Certain companies are more prone to chargebacks than others, mainly because they’re in high-risk industries or offer services that customers cannot physically inspect before purchasing.

Companies in high-risk areas usually have to contend with higher pricing, “risky” items, and a significant sales turnover—all of which can lead to a higher dispute and chargeback rate.

Below are examples of high-risk businesses and why they may be more prone to chargebacks:

  • Adult and dating: Adult entertainment and dating services are often seen as high-risk businesses due to friendly fraud, catfishing, and risky activities.
  • Auto parts and accessories: Auto parts dealers, car detailing services, and other automotive-related businesses can be more likely to experience chargebacks due to their inability to guarantee the quality of their products and services. They also sell high-price, in-demand products to an irregular customer base or a wide range of buyer types.
  • CBD: Companies selling CBD products are often subject to chargebacks due to the product’s legality in some states and countries.
  • Debt consolidation: Companies that offer debt consolidation services deal with customers who mostly have bad credit records and poor cash flow.
  • Direct marketing and eCommerce: Direct mail and ecommerce companies are vulnerable to chargebacks due to increased fraud and the potential for customers to receive goods or services they did not order, do not want, or bought on a whim.
  • Gaming: Online gaming services are more likely to encounter chargebacks due to customers overspending or disputing charges after realizing the game was not worth the money they paid. Online gambling services are more likely to experience chargebacks due to customers disputing charges after losing money.
  • Legal: Companies providing legal services—particularly those that require payment upfront—are more likely to suffer from chargebacks due to customers not understanding the terms of the service or not being satisfied with the outcome.
  • Membership and wellness: Companies providing gym memberships, health clubs, and other wellness programs deal with customers who are sometimes not satisfied with the services they receive or those who cannot sustain a long-term commitment to fitness.
  • Nutraceuticals: Nutraceutical companies are often subject to chargebacks due to customers not being satisfied with the product’s (instant) results.
  • Property management: Companies that offer property management services may be at higher risk of chargebacks due to customers disputing charges for services they feel weren’t adequately performed.
  • Subscription: Subscription services are more likely to encounter chargebacks due to customers not being satisfied with the service. Some also cancel their subscription before receiving their full benefit or subscribe on a trial basis and forget to cancel the subscription before they’re charged fees.
  • Timeshare: Timeshare companies deal with chargebacks due to customers disputing charges after realizing the service wasn’t worth the money they paid. Many customers also change their minds, cancel their trips, or need help to sustain the long-term arrangements in timeshare offerings due to changes in personal circumstances.
  • Trial and continuity: Companies offering trial and continuity programs may experience chargebacks due to customers not understanding the terms or not being satisfied with the services they receive.

Von Payments’ Turnkey Chargeback Solutions

When it comes to risk management and chargeback disputes, a generic approach is never the answer. As each business has its own needs, dispute resolution must be tailored accordingly.

Here at Von Payments, we don’t just stop at providing you with the best payment processing solutions to maximize your business potential. We also want to help you keep your hard-earned dollars.

While chargebacks are a natural part of processing payments online, we will help you prevent most chargebacks at the source—plus track, manage, analyze, and represent you when these disputes escalate.

Chargeback Alerts

Von Payments sends alerts and tracks chargebacks at the source—all while managing, analyzing, and representing you when these disputes escalate. This helps you, the merchant, fix any issues before they turn into chargebacks.

Our service promises to reduce the risk of your business being exposed to this statistic by proactively alerting you to any potential chargebacks. This allows you to respond quickly, and our team will help you easily manage these disputes.

Von Payments can help you cut your chargeback ratio by as much as 40% by addressing potential disputes in real time before they turn into chargebacks.

Take advantage of our popular alert products:

  • Verifi CDRN
  • Ethoca Alerts
  • Verifi Order Insight
  • Ethoca Consumer Clarity
  • Rapid Dispute Resolution

Chargeback Representation

Von Payment chargeback representation service is designed to help you gather crucial data for informed decision-making. We do this by:

  • Observing chargeback reason codes
  • Optimizing transaction dispute responses
  • Representing you in actual chargebacks disputes
  • Providing you with timely ROI reports that show metrics like dispute rate, win rate, and recovery rate

In case of a chargeback, we investigate the situation, compile evidence, and represent the transaction to the bank.

Rapid Dispute Resolution (RDR)

Von Payments leverages Rapid Dispute Resolution (RDR), one of the more effective methods of preventing disputes before they become actual chargebacks.

Developed by Visa, RDR triggers at the card acquirer level, automatically refunding transactions with a high likelihood of becoming chargebacks on your behalf. And even if you’re already in breach of Visa’s chargeback threshold, you can quickly reverse course and your chargebacks are under control with RDR.

From our years spent fighting chargebacks, we find RDR to be a fantastic solution to reducing your chargeback ratio, ensuring the health and longevity of your merchant account.

Here are some of the benefits of RDR:

  • Fully automated
  • Prevent chargebacks
  • Reduce false positives
  • Reduce friendly chargebacks
  • Quick deployment
  • More sales at higher conversion

Benefits of Chargeback Management Software

Quickly Reduce Chargebacks

Through automation and machine learning, chargeback management software quickly determines valid claims and can quickly reduce the number of chargebacks you have to deal with. Your merchant account will be less risky, and the funds can flow more easily into your business, resulting in more profits.

Even better, effective chargeback management software allows businesses to appropriately identify fraudsters so they can take appropriate action against them, improving security for everyone involved in your business operations.

Save Sales More Frequently

For any merchant, lost sales are frustrating and costly. Chargeback management software can be a massive help in eliminating this problem. It will track chargebacks and provide you with actionable intelligence to make informed decisions.

This software will help retailers identify which types of sales are more likely to succeed, thereby saving the company from the hassle and cost of negative sales resulting from chargebacks. Furthermore, AI technology in such software can detect fraudulent activity before it even happens, helping retailers prevent losses altogether.

With chargeback management software, businesses have every resource they need to save their sales more frequently and keep their bottom lines healthy.

Chargeback management software streamlines the dispute resolution process and automates different procedures, such as fraud detection, notification responses, and chargeback data review.

Manage Disputes and Chargebacks in One Place

Chargeback management software is an incredible tool for streamlining dispute management and overall chargeback operations. Instead of constantly looking through multiple locations to find the necessary data, chargeback management software consolidates all this information into one intuitive platform.

A powerful chargeback management software not only removes the burden of manually tracking disputes and chargebacks but also helps businesses stay on top of those issues with notifications to alert them when new challenges arise.

It also creates an organized platform, housing all cases under one platform—making it easier to manage, monitor, and analyze reporting data.  This platform allows organizations to quickly and easily find the necessary information and manage customer disputes on time while limiting fraud exposure.

Inform Future Fraud Prevention

Chargeback management software can be an invaluable prevention tool in any business’s arsenal of fraud prevention techniques. By effectively tracking and monitoring chargebacks, companies can better identify patterns of fraudulent activity, as well as high-risk customers.

With timely notifications and actionable insights, businesses can quickly detect irregularities, take sophisticated steps to prevent disputes from reaching the chargeback stage, and avoid costly assessments and penalties.

Chargeback management software offers fraud protection as it provides insight into customers’ purchase histories. This data can be used to identify potential problems, from cases of possible fraud to unforeseen chargebacks from unhappy customers. Using this data, merchants can form better strategies to prevent future fraud and chargebacks before they become costly.

Chargeback management software makes an ongoing endeavor out of fighting fraud, making it possible for even small business owners to gain control over payment processes—essentially free from the risk of fraudulent charges.

Communicate Refunds Quickly

Chargeback management software is excellent for any business trying to secure revenue from transactions and manage customer issues.

Not only does this software protect your business from fraud, but it can also communicate refunds quickly, providing fast resolutions that prevent customer negative experiences or reviews. For those seeking an efficient way to handle refunding process in large batches, the software allows these batch requests to be sent out without having to enter each transaction through slow manual processes.

From small businesses to large corporations, chargeback management software substantially benefits streamlining businesses’ financial operations while building customer satisfaction and loyalty.


Chargeback Management is Done Right With Von Payments

Chargebacks are an unfortunate but inevitable part of the business—but that doesn’t mean you have to let them ruin your day.

Von Payments provides comprehensive, full-suite chargeback management solutions to maximize your business potential. As your partner in chargeback management, we aim to enhance dispute resolution and your processing capabilities so you can focus on scaling your successful business.

With our quick, easy, and affordable solution, you can rest assured that chargebacks will be managed efficiently and effectively.

Contact us today to learn more about how we can help take the hassle out of chargebacks for good.


Cash Discounts

Cash Discounts: What Are They and How Can They Benefit Businesses?

What Is Meant by a Cash Discount?

A cash discount is an incentive that sellers can offer to customers when they pay using cash over cards. It’s equivalent to a reduced price when buyers pay a product or service in full or complete a transaction within a certain period without deferred payments.

Cash discounts can come in the form of a fixed amount or a percentage of the actual price—ranging from 1-5% depending on the offering.

A 2019 Federal Reserve survey shows 23% of respondents prefer to pay with cash. This is an opportunity that merchants can take advantage of to reduce swipe fees associated with payment types involving credit cards, all while attracting and retaining loyal customers.

Examples of a Cash Discount

Here are three examples of how small businesses apply cash discounts.

Food Service Industry

Restaurants, cafes, fast food, and other food service businesses offer cash discounts for customers to save money on merchant fees.

Some restaurants use point-of-sale systems (POS) to set up their cash discount program. They can apply cash discounts for their restaurant, café, or food truck with only a few clicks.

For example, when customers pay for their $30 meal, they receive a line item on their receipt reflecting this. But paying cash can give them a 5% discount, and they will only have to shell out $28.50, which appears on the receipt as “total with cash discount.”

Eventually, the restaurant may see more customers arriving with cash because they know of the discount.

Service Contractors

Service providers like plumbing services and home contractors can also provide discounts when customers pay with cash instead of using a credit or debit card.

Especially in rural areas, plumbers and cleaners may offer a fixed fee discount when customers pay with cash. This can save their customers up to $50 on large jobs like repairing water pipes or installing new fixtures.

Gas Stations

Perhaps the most common example of cash discounts is with independent gas stations. Many charge 5-10 cents per gallon less when patrons use cash rather than credit card payments. Some may even give as much as 20 cents per gallon less with cash payments in 2022. 

Benefits of Cash Discount Programs

A cash discount benefits both sellers and buyers.

Buyers get a sales discount that allows them to save money on their purchases and pay off their balance quickly.

Business owners get faster access to funds that eventually cover overhead costs. They eliminate higher service fees and surcharges from other payment methods and avoid bad debts because customers pay upfront or within a specific timeframe. Many enjoy improved customer satisfaction while lowering transaction costs.

Reduce Fees to the Business

Cash discount programs reduce debit or credit card processing fees.

They’re often more cost-effective than standard processing fees associated with credit card transactions as merchant accounts typically only must pay a flat fee rather than paying per transaction.

Cash discount programs are also simple; they don’t require tedious administrative or accounting procedures, and businesses typically only need a point-of-sale platform to apply cash discounts. This means avoiding lengthy checkouts or complex back-end reconciliations. 

Consistent Profit Margins

Cash discount programs help business owners maintain a consistent profit margin.

The payment processing fees from Visa, Mastercard, Amex, and other credit card processing companies are different, making it harder to forecast your profit margins.

Cash discount programs take this uncertainty away. The more cash discount amount you apply for multiple transactions, the more consistent your profit margins will be.

Attract Those Looking for a Bargain

Cash discount programs provide businesses an opportunity to attract bargain-seeking customers.

Restaurants, gas stations, eCommerce shops, and other businesses see an uptick in their customers bringing cash. Cash discounts make customers feel like every transaction is a win because they don’t have to pay the full amount. They serve as an incentive for customers to shop more often at your store or become a loyal patron of your service business.

Businesses get rewarded with increased customer loyalty by making patrons feel they are saving money.

Increase Cash on Hand

Cash discount programs provide businesses with a great way to increase cash on hand. They serve as early payment discounts, incentivizing customers to pay the full amount, on their due date, or within a specific time frame.

Businesses can take advantage of the built-in discounts offered in these programs and turn that into increased cash flow. They can manage their customer’s accounts receivables more effectively and shorten the average collection period. 

Von Payments Can Help You Offer Cash Discounts

Cash discount programs provide businesses with a great way to attract bargain-seeking customers, improve their bottom line, increase cash on hand, and manage accounts receivable more efficiently. These programs allow businesses to offer discounts on purchases made with cash without additional cost or effort.

These programs also create a win-win situation for both parties involved—businesses can reduce their processing costs while customers are incentivized to pay with cash and save money on their purchases.

At Von Payments, we make it easy for businesses to get started with cash discount programs. Our zero-cost helps you quickly set up discounts tailored to your business needs.

  • Reduce your cost on all card types: Eliminate paying for the convenience fee of processing cards. Using this program, you can potentially cut all processing costs and watch money come in almost immediately.
  • Easy-to-use platform: Getting started with zero-fee processing is super easy with Von Payments and does not cost you a thing. Our turnkey POS terminals come installed with software that is easy to use and ready to process out of the box. The equipment comes with built-in dual pricing, so you don’t have to worry about calculating the difference between cash and debit or credit card pricing.
  • Eliminate processing costs wherever you’re located: Enjoy Zero-Fee processing as Von Payments offer both physical and virtual terminals equipped with this technology. Our Zero-Fee Card Acceptance is fully compliant in all 50 states and is approved by the regulatory counsel and all major card brands, so everyone has the ability to take advantage of it.

Get started today with Von Payments and start taking advantage of the benefits a cash discounts program can bring to your business!