Cash Discount Processing is the wave of the future. According to a Federal Reserve study, people use cash for approximately one in five transactions in the United States.
Some stores and businesses offer a cash discount program. These businesses take a certain percentage off the total purchase if customers pay with cash.
Any business owner considering a cash discount program probably has questions. You might wonder how these programs work, if they’re even legal, and how much you can save.
Read on to find out everything you need to know about using a cash discount processing system!
Cash discount programs are a way to offset the cost of credit card fees. Any business or individual who accepts credit cards can offer a cash discount.
Essentially, with this kind of program, customers paying with cash can save a percentage of the total price. When customers use a credit or debit card, they cover the cost of the transaction fee.
Your processor will give you a lower rate on processing fees if customers pay with cash. Some people prefer to pay with cash, and these customers are more likely to choose your business if you offer a cash discount.
Businesses that offer a cash discount can also use it to attract new customers. Not only can you use this program to save money on your transaction fees, but you can also generate more business.
Many transactions use credit cards, especially with online sellers, but the fees can make businesses less profitable. Cash discount programs are a great way for businesses to encourage customers to pay with cash.
The simplest form of a cash discount program is something like, “If you pay with cash, you get 10% off your purchase.”
This type of program is useful for any business that accepts credit and debit cards, but some are better suited for them. Businesses with a product or service that rarely changes are good candidates for a cash discount program.
Examples of businesses that should consider cash discounts include:
Businesses with a more extensive inventory might have a harder time implementing a cash discount. Large retailers, for example, have a constantly changing inventory that makes it more difficult.
The reason certain businesses are better suited for cash discounts is because of how pricing works.
When you offer a cash discount, you include the cost of credit card processing in the advertised price. If a customer pays with cash, they pay a discounted price.
To cover the cost of card processing, businesses must alter their pricing structure. A business that moves a large volume of products will therefore have to work much harder changing their prices.
As a result, food vendors and businesses with a small selection of services are a better choice for this program.
Many business owners confuse cash discounts with surcharges. However, cash discounts and surcharges work in very different ways.
It’s important to understand the differences before you decide which one is right for your company. Cash discounts are easier and more common, and have fewer legal issues.
A surcharge is a fee added to the advertised price if a customer pays with a debit or credit card. With a cash discount, on the other hand, customers paying with a card pay the advertised price.
This makes cash discount programs more flexible merchant services overall. They can be implemented with minimal changes to your business model (and without any need for additional equipment).
Surcharges can also be difficult if they’re applied across multiple products or services. For example, products with varying amounts due at checkout can confuse and frustrate your customers.
Cash discounts also allow users more flexibility when planning out their purchases in advance. They also don’t require any change in customer behavior, such as making sure they know about all applicable fees.
With a cash discount, customers view your payment options as a chance at saving. With a surcharge, it seems more like a hidden fee.
When you offer different prices to customers based on their payment method, it can raise legal questions. Businesses may be hesitant to implement a cash discount because they aren’t sure if it’s entirely legal.
Businesses using a surcharge are more likely to run into legal issues. Although legal in most states, surcharges for credit cards have to be clearly displayed at the point of sale.
Some states have outright bans on surcharges for credit card transactions. Cash discount programs, however, are legal anywhere in the United States.
With a cash discount program, the vendor adjusts the price of each product or service to account for the cost of processing fees. When a customer pays cash, the vendor applies the discount at checkout.
Because the customer never pays more than the advertised price (except with regard to taxes), there are no legal issues.
A cash discount program is one of many tools available to help you save money and make your business more profitable. Unlike a surcharge, customers don’t pay an added fee when they pay with a credit card.
Instead, customers who use a card pay the advertised price, while cash-paying customers get a discount. Businesses can use their cash discount program for advertising while saving money on credit card processing.
First Financial offers merchant services with 24/7 customer support. If you need a way to accept credit cards, we can help, even if you’ve been turned down by traditional banks.
Contact us today to learn about our financial services!
Starting a local business is a great way to contribute to your community. Experts say that 68% of the money spent at small local businesses stays in the community in the form of taxes paid, local workers paid, and partnerships with other small businesses or nonprofits, versus 43% of money spent at non-local businesses. Although starting and running a successful business requires some planning, it’s possible.
Before you do anything else, take time to do some research on the local market to see if there’s a need for a product or service that is not being met. When you know know what products and services you want to offer, find out if others are already filling this niche. As there seems to be a place for your business, then go ahead and create a budget and a business plan. If your business will have a brick-and-mortar presence, find a good location. Set up a website for your company; this is critical if you won’t have a physical store open to the public.
While creating the business plan, you’ll be thinking about how you want to organize your company. A limited liability corporation (LLC) has many advantages, such as protecting your assets, simplifying paperwork, allowing more flexibility, and there may be tax advantages. You could set this up yourself, although other options include hiring an attorney. Try to do it or using a formation service, which is less expensive. Before you proceed, be sure to read reviews of the various professionals and services so that you’ll know you’re working with a reputable company.
You might want to go back to school in order to earn your bachelor’s degree in business before jumping into being an entrepreneur. Degrees in finance, accounting, management, communication, or a general business degree can provide you with skills and knowledge that will help you establish your business. Many online programs make it possible for you to work or even run your own business while earning the degree. An additional benefit might be that you’ll make some useful contacts who can mentor or partner with you later.
Once you’ve got your business started, it’s important that you get the word out with marketing as well as make an effort to engage with the community. Consider sponsoring a local sports team, event, or music festival; the connections you’ll make and the visibility of your business will be valuable. Your social media presence is important, so set up pages for your company on one or two different platforms. Later on, you can assign the maintenance of social media to an employee if this is not something you enjoy. Do your own shopping locally as much as possible, both to support your community and to get to know others and make them aware of your own offerings.
Make sure your business participates in local events such as festivals and fund-raising. You might consider pairing with another local business or non-profit to offer mutual promotion and hand out fliers or discounts for each other. Employ local workers as much as possible.
Besides offering employment to local workers, you’ll be creating revenue and, therefore, tax dollars that go back into the community. Once your company is up and running, you’ll be showing out-of-town visitors what a great place your town is and possibly attracting more investment in the community. Whether you return to school for a business degree or plunge in using the knowledge you already have, you’ll be adding a beneficial enterprise to the neighborhood. If you choose to make your business an LLC, you’ll be protecting your assets and gaining some tax advantages.
If you’re looking for a company you can trust or some other type of loan, consider First Financial, where the process is streamlined online.
In today’s side gig economy, many people are looking for ways to make extra money on the side or to replace the income they’ve lost due to being laid off or underemployed. After all, unemployment rates are at an all-time high. But the good news is that now more than ever, there are many ways to supplement your income or make some extra money. Here, First Financial shares some ideas to get you started:
If you have a skill or talent that others need, consider offering your services freelance. The gig economy in the U.S. is booming, so this is the best time to get started. There are many websites and platforms, such as Fiverr, Upwork, and Freelancer, where you can market your services and connect with potential clients. The best part about freelancing is that you’ll be able to use your pre-existing skills or experience to get started. For example, if you have a keen eye for detail, organization, and problem-solving, you could offer freelance interior design services. You can enhance your credentials (and earning power) by obtaining interior design certifications when listing your services. This certification, for example, will show potential clients that you have mastered specialized interior design skills.
Starting your own business is an excellent option, as this will ensure you make money and the hours you need on your own schedule. When doing so, do your due diligence on the ins and outs of running your company. You should research selling and marketing strategies and deeply understand your niche and demographic. Another essential element is business structure. Forming an LLC for your business structure has several advantages, such as tax benefits, limited liability, and reduced paperwork. States have different regulations around LLC formation, so check out the rules in your state before moving ahead. And if you’d like to avoid the hefty lawyers’ fees and legwork, you can use a formation service to simplify the process.
In addition to the options mentioned above, there are so many more side gig opportunities out there! You could also utilize talents you may have that you didn’t know were marketable. Let’s see some ideas below:
There’s no one answer for how to find work you love. The important thing is to keep exploring and trying new things until you find a career that suits you. Talk to people in different fields, take on internships, and volunteer for organizations you’re interested in. Once you have a better idea of what you want to do, research different companies and look for job openings that match your skills and interests. Don’t be afraid to apply for jobs slightly out of your comfort zone – you never know what you might end up loving. The most important thing is to stay positive and keep exploring until you find your perfect career.
Ready to get started on making that moola with a side gig? Whether you’ve been laid off or just looking to supplement your income, remember that there are so many options out there! No matter your skill, experience, or preference, you’re sure to find the work you are looking for.
For more informative resource guides, check out First Financial for articles and content.
Understanding DCA as it relates to Bitcoin. There are certainly some flashy, eye-catching methods of investing in bitcoin. Unfortunately, they seldom offer the rewards they promise.
You may have experienced disappointment after disappointment with these techniques. Now you’re looking for something that doesn’t overstate its potential but delivers consistent, reliable results.
What you’re looking for is dollar cost averaging or DCA. When you DCA bitcoin, you gain valuable benefits both financially and otherwise.
We’ll share seven impressive reasons investors say they found what they were looking for in DCA. Bitcoin Savings Account: 5 Important Things to Know
DCA or dollar cost averaging is an incremental approach to investing regardless of market conditions. In its most basic form, it means purchasing bitcoin at regular intervals, such as weekly, on an ongoing basis. You can easily automate the process, so you don’t have to remember to make your next purchase.
Now let’s look at DCA’s potential benefits.
Timing the market is tempting to most new investors. On the surface, it seems simple. You watch the market until prices dip significantly and buy. Next, wait until prices rise as high as they can and sell before prices start heading downward.
One of the many problems with trying to time the market is you have to be right when most other investors are wrong. That would be a challenge for even the most brilliant, well-educated investor.
You are also putting yourself in a position where you must be right not just once but twice. You have to correctly predict the bottom of the market as well as its top.
Conversely, you’re not worried about being “right” or “wrong” with DCA. You’re looking down the road.
So, how effective is the approach? Let’s look at what would have happened if you had purchased $20 of bitcoin weekly beginning on the first day of 2014 and continued until November 8, 2022.
According to a bitcoin DCA calculator, you would have converted a $9,220 investment into $160,877.02. That’s an increase of over 1,645%.
Decision fatigue is the mental state after a person is overwhelmed for an extended period with choices to make. You may have experienced this if you’ve ever had to plan a wedding or remodel a house. The decisions can seem fun initially but become increasingly burdensome as the process drags on.
That’s why you’ve heard the oft-repeated story of people in power, such as CEOs and even the President of the United States, limiting their daily wardrobe. In the mornings, they don’t face a multitude of choices for clothing. Those who have adopted this approach say that it saves them valuable mental energy.
Dollar cost averaging your bitcoin likewise saves your brain from the exertion of having to make daily buy and sell decisions. You only need to establish your investment amount and the frequency with which you’ll invest. That’s it. You’re done.
You may be a person who believes it’s not necessary to set up a budget. Perhaps, you never experience a financial shortfall at the end of the month. That’s great. But there are other reasons why a budget is still valuable.
A budget helps you set priorities. Without one, you might find other ways of spending your money. But if you use a budget, you will mentally set aside a certain amount to buy bitcoin.
This leaves you and your wallet free. You can concentrate on pastimes, hobbies, and other activities.
Any asset can be the subject of the great hype machine, but bitcoin is a favorite target. Try browsing bitcoin newsletters, blogs, and podcasts without being told you’re in danger of missing out on the next big thing.
No one’s surprised when a small child is distracted by shiny things, but we’re disappointed when supposedly mature people are. You can avoid disappointing yourself by using DCA.
You would no longer have to scrutinize each new offering for fear of missing out. Jumping from one investment strategy to another is a sure way of losing momentum. As the old saying goes, the person who chases two rabbits seldom catches either.
Market volatility frightens newcomers and even some longtime investors. Why? There’s a dread of losing money if the market tanks shortly after you enter it.
That fear is understandable for a new investor looking for somewhere to put a small inheritance. You don’t want to wake up and learn that you lost 50% of your investment overnight.
On the other hand, using DCA to invest a reasonable percentage of income regularly reduces risk. How?
You know that you’re not reliant upon the results of a one-time investment. You’re in the market for the long term.
Therefore, if your assets take a hit, you’re sure of two things: 1. history tells you the setback is only temporary, and the market will rebound, and 2. now that prices are lower, you’re going to purchase more bitcoin at a bargain as part of your regular investment routine.
One of the reasons bitcoin trading can be obsessive is its availability. There is no off time. The market is constantly changing, which is an enticement to someone whose brain is geared toward finding excitement and novelty.
Seeing what a traitor thinks are signs of a bull run can release dopamine, a brain drug of anticipation and reward. The sensation can train the brain to chase that high over and over. Progressively, the anticipation and the reward have to become greater. That usually means risking more money.
Like any addiction, bitcoin obsession can lead to financial ruin. More importantly, it can endanger families and other relationships. Even your physical health is involved.
DCA can reduce the likelihood of your heading down the path of addiction because it doesn’t matter what the market is doing at three in the morning, during your best friend’s wedding, or during your grandfather’s funeral service.
Your Investments are on a set schedule, leaving you free to focus on the more important moments of life.
Even the most hardcore bitcoin investor will likely have a well-rounded portfolio that includes other assets. However, spending all day every day concentrating on buying bitcoin leaves little room in your schedule for researching other investment opportunities.
DCA gives you that time back. Now you can delve into other avenues that require learning about promising assets with which you need to become more familiar.
Are you interested in getting off the never-stopping treadmill of timing the market? If so, you can DCA bitcoin to find the same comfort and peace of mind it’s given other investors.
Contact us today for more information about how you can get started with dollar cost averaging.
What Happens if You Don’t Pay Back a Loan? The average American has $90,460 in debt, so most adults are familiar with loan repayments. These are usually manageable amounts paid monthly to chip away at debt slowly.
Considering that loan amounts are huge, it’s not unusual for it to take years or even decades to make repayments in full. And when something takes this long, it’s common for slipups to happen from time to time. You might accidentally pay a week late, or worse yet, completely forget a payment.
What happens if you don’t pay back a loan though? Read on to find out everything you need to know about this topic.
If you don’t pay back a loan in only a few days, then it’s considered delinquent. If your payment is late by at least 30 days though, then it’s considered in default (more on this later).
Here are some consequences if you fail at paying a loan back.
If there were no late fees, then borrowers wouldn’t be motivated to make payments on time. So if don’t pay back a loan, you’ll have something extra on top.
Every lender will set their own late fees, so check your loan terms or the lender’s website to find out exactly how much you’ll pay.
You can be reported to the credit bureaus if you miss payments. But the good news is, if you miss one by just a few days or a week, it’s not likely it’ll be reported.
Don’t make a habit of late payments though. Just one might be reported, which can damage your credit score. And if a few get reported, this can really sink your score.
Either way, the blemish can stay for up to 7 years on your credit report! This means it can take a while to rebuild your credit score, so you want to avoid this at all costs.
A loan default happens when your monthly payment is over 30 but under 90 days overdue. The exact days will depend on the type of loan you have and what the terms are.
Once you default on your loan, it’ll go to collections, which can be in-house or a 3rd party. Both will try to contact you to receive the leftover loan amount, so expect them not only to call you, but also to text and email you.
If you have a secured loan, then the lender might seize the collateral. If it’s unsecured, then they (either the collector or lender) might take you to court or place a lien on something like your house (if you own it). It’s also possible for them to have your wages garnished.
If you had a co-applicant for the loan, then they should be aware that they’re responsible to pay should you default on your loan.
Making a payment late is better than not paying at all, so you should schedule a payment as soon as you can. If this isn’t possible within 30 days of the due date, then here are some things you can do.
If you already know you can’t make a payment on time, contact your lender.
Many will work with you so you’ll stay with them as a client. For example, they can temporarily suspend payments or defer them. You might also be able to negotiate lower monthly payments so they’re easier for you to budget.
Those who have good support networks may have some friends and family members who will want to help. Borrowing from your loved ones is the best solution since there are typically no interest rates involved and repayment terms are much more flexible.
Financial matters can cause tension in relationships though, so it’s understandable if you don’t want to ask your social network for money.
If you’re employed, then consider getting a payday loan to make a loan payment on time.
However, you should only save this for emergencies, as payday loans come with the highest interest rates around. But they can help you in a flash since the application process, approval, and loan disbursement all happen within 24 hours.
Debt consolidation is when you combine all your debt into one loan, usually a personal one.
Not only does this cut down on stress since you only have 1 monthly payment as opposed to multiple, but it also cuts down costs. When you transfer all debts to one loan, you typically end up with an overall lower interest rate to pay.
Do note that while this doesn’t eliminate your debt, it does make it easier to manage.
So what happens if you don’t pay back a loan? Several things can occur, and they can all be detrimental to your future.
It’s important that you’re diligent with repayments, as a single late one can negatively affect your credit score. But life happens sometimes, and you don’t have the funds to cover everything.
If you have a poor credit score and/or need money fast, and can’t wait until your next paycheck, then consider a cash advance. This fast money can cover unexpected expenses to lessen your burden immediately.
Find out more about cash advances today. You can apply for one and receive money within 24 hours if you qualify.
What are payday loans? Select get started and enter your state to see available offers.
On average, adult Americans have between $11,200 to $57,800 in their savings accounts. That may sound like a lot, but 56% of Americans aren’t able to cover an unexpected $1,000 bill.
If you’ve had a huge expense come up and aren’t prepared for it, then you might be panicking. Where are you supposed to pull all that money out from anyway?
Personal loans might take too long to get. But did you know about payday loans?
What are payday loans? How can you use them, and what are the pros and cons that come with them? Read on to find out!
Payday loans are also known as cash advance loans. As the name suggests, you’ll need to have a source of income to get this type of loan since your paycheck is used to repay the amount once your employer disburses the money.
These loans are considered a type of short-term loan since they’re usually repaid within a few weeks or a month (whenever your next paycheck is due). Whereas with a traditional personal loan, it can take years to repay in full. Because they’re short-term loans, payday loans also tend to have lower amounts.
Do note that not all states allow payday loans.
Besides having a source of income, there aren’t a lot of requirements. You’ll need to be at least 18 years old, have an active bank account, current residence, and valid ID. Some lenders also require a minimum monthly income.
This means that if you have no or poor credit, you may be able to borrow money.
The beauty of payday loans is you can use them for anything you want. There are no restrictions, so whether you use the cash for groceries, rent, gas, or anything else, you won’t be limited.
If you’ve got some loan choices available, then you might be wondering what the benefits of payday loans are. Here are some of the main pros.
You can apply for payday loans at a brick-and-mortar lender. But if you don’t want to leave the comfort of your house, this is possible too.
There are lots of online lenders you can browse without wasting time or gas. And once you find one you like, you can apply for online payday loans right on your computer.
The application isn’t long and complicated, so you don’t need to spend much time filling it out.
More importantly, it won’t take long for the lender to get back to you. In most cases, you’ll usually hear back faster than traditional loans.
With traditional loans, it can take several days to weeks for lenders to give you a decision.
Not only will you receive quick responsives from lenders, but you can also get the funds fast. If there’s an emergency, once you accept the loan offer from a lender, funds can be deposited in as little as 24 hours
This can ease your burden and stress, especially since traditional loans take a while for approval and disbursement.
If you have bad credit or none at all, then you might already know how difficult it is to get approval for personal loans or lines of credit. It can feel impossible to secure much-needed funding.
What’s great is payday loans for bad credit are available. So long as you have a steady paycheck, it’s pretty easy to get.
If your next paycheck is smaller than expected and you can’t cover the entire loan amount, you may be able to roll over the loan. This means you just pay some fees and you can use your next paycheck to cover the rest of the payday loan.
Otherwise, repayment is a one-and-done situation. So there’s less stress when compared to monthly payments with a traditional loan.
Payday loans certainly come with a number of benefits, but there are also drawbacks. Here are the main ones you should be aware of.
If you think credit card interest rates are high, then wait until you see the ones attached to payday loans.
Some states don’t have rate caps; for example, before one was introduced in Ohio, payday loan rates stood at 677%! In the state of California, the typical interest rate is 460%.
But if desperately need money and are certain you can immediately pay off the loan with your next paycheck, it can save you in a pinch.
While rollovers are handy when you can’t pay back your advance in full, they can quickly add up. In addition to the fees, you’ll need to pay the high interest amount, which will only grow the longer you extend repayment.
The answer to the question “what are payday loans” is they’re a quick and easy way to get fast cash when you’re in a bind. However, they’re not without their pros and cons, so make sure you carefully weigh them up before you get one.
If you do decide they’re right for you, then the next step is to take out a loan from a reputable company. We at First Financial are here to give you the options you need fast!
Ready to get started? Then apply for a payday loan now!
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