Cash Discounts
Core Product: Aloha Cloud
Complimentary Products: No
Separate License Required? No
View/Download/Print: Supporting Cash Discounts Quick Reference Guide - HKS1742
About Cash Discounts
Cash discounting is a pricing model where a restaurant offers a discount on listed, stated, or standard menu prices for consumers willing to pay in cash. Merchants can use the Aloha® Cloud system for Quick Service and Table Service to support this type of pricing model. A successful cash discount program includes an in-store training strategy that helps employees understand how and when to apply a cash discount and the communication to relay to the consumer.
Implementing a cash discount is a simple and seamless process. You use the existing Discounts function to configure a cash discount as either a percentage or an amount discount type. The system automatically calculates the discounted amount for you and displays it on the Cash button on the Point-of-Sale (POS).
With the discounted amount known, the employee can describe the benefits of paying with cash to the consumer, as decided by the merchant. The employee simply needs to tap Cash to apply the discount to the full balance due and the consumer realizes the savings.
When consumers are aware they can keep more money in their pockets when visiting a restaurant with a successful cash discounting program, the merchant notices increased profit from repetitive business.
Tip: Cash discounting with Aloha Cloud is only available when using Connected Payments and NCR Voyix Payment Processing.
Ensuring a successful cash discounting program
There are guidelines the merchant needs to follow for implementing a cash discount program.
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The most important component is transparency to the consumer. It is the responsibility of the merchant to ensure the standard (non-discounted) price appears to the consumer at all times. This includes all public displays at the door and counter, printed guest checks, printed and digital menus, and the base items entered in to the Aloha Cloud system. The cash discount is then communicated to the consumer, either verbally or in printed format.
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The requirements of the cash discounting program must appear in plain view to the consumer, as shown in the following signage example. The consumer must clearly understand the standard cost of goods and services on display are for payments made with a credit/debit card and the discounted price is available only for a cash payment.
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The merchant cannot inflate the displayed standard price to compensate for the cash discount and must adhere to all legal and ethical standards for the cost of goods and services.
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The cash discount only applies to guest checks that are fully paid in cash and is invalid if the check has a partial payment by a non-cash tender.
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The merchant must adhere to network operating guidelines which can change over time, such as those found in the Visa® and Mastercard® merchant acceptance guidelines. Refer to Visa Rules and Policy and Mastercard Rules for more information.
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Cash discounting cannot be used with other fee programs defined by the card networks, such as surcharging, convenience fees, and service fees.
Tip: You cannot, nor will the Aloha Cloud system allow you to, implement a cash discount and a surcharge at the same store. Refer to Setting up payments for more information on surcharges.
Configuring Cash Discounts in Aloha Cloud
Learn how to configure Aloha Cloud to support cash discounts.
Using Cash Discounts in Aloha Cloud
Learn how to apply a cash discount when a customer pays with cash.