What is Cash Discounting?

What is Cash Discounting?

Info
Supported Domains: Standalone ONLY

Notes
This is not applicable for Doordash and Chowly integrated businesses which are exclusive of Pay Now flows.
Alert
Prerequisites:
It's recommended to have an Applova Standalone Business inclusive of POS, because if merchants using Applova POS attempt to implement Cash Discounting (Dual Pricing) with other vendors that support Cash Discounting but follow a different process, it could result in an inconsistent  experience and application of the feature. If a business has multiple stores, they should be centralized.

What is Cash Discounting?

Cash Discounting is a tactic used by merchants to help them cover the cost of credit card processing fee. This technique incentivizes customers to use cash by giving them a small discount when they do. Taxes and promotions will also get deducted when cash discount is configured to a business.

How to Configure Via Admin Portal?

Notes
Note that this configuration is solely for calculation purposes, and manual updating of menu pricing is still required.
Step 1

Login to the "Admin Web Portal" and search for the business with the business ID or business name. 

Step 2

Click on "Ordering" tab and under "Business Charges", click on the "Update" button for Cash Discount Percentage.


Step 3

Then enter the percentage and click on "Update".


How to Calculate the Hiked Up Price? 

Info
Hiked Up Price = Unit Price x 100 / (100 - Cash Discount Rate) 
Example
Unit Price = $53.92 
Cash Discount Rate = 4
= $53.92 x 100 / (100 - 4)

= $56.167 
= $56.17 (Hiked up Price → Rounded to two decimals places)


Scenario 1: Fresh Merchant Enrolling with Cash Discounting

When a fresh merchant onboards and opts in for cash discounting, follow the below steps to calculate the Hiked Up Price.

Step 1
Collect the base product prices from the merchant.

Step 2
Download the Sample Cash Discount Template.

Step 3
Fill the base product prices in the "Before Price" column and fill the "cd %" column with the cash discount rate.

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Step 4
Calculate the "Price" column using the formulae found in the sample cash discount template. 

Info
Hiked Up Price = Unit Price × 100 ÷ (100 – Cash Discount Rate)

Notes

Make sure to fill the rest of the template with product names, descriptions, etc..


If the Product has Variants/Add-ons make sure to calculate the hiked up price for those relevant sheets.



Step 5
From the "Products" section in the Merchant Portal, click on "Actions" then "Import Products".

Image Link

Step 6
Upload the updated cash discount template with the hiked up prices.

Scenario 2: Existing Merchant Enrolling with Cash Discounting

When an existing merchant chooses to enroll with cash discounting follow the below steps to calculate the Hiked Up Price.

Step 1
From the "Products" section in the Merchant Portal, click on "Actions" then "Export Products".

Image Link

Step 2
Review the current product prices in the downloaded CSV.

Step 3
Download the Sample Cash Discount Template.

Step 4
Copy the content from the downloaded CSV to the Sample Cash Discount Template.

Step 5
Move the values from the "Price" column to the "Before Price" column and fill the "cd %" column with the cash discount rate.

Step 6
Calculate the hiked-up prices using the same formula.

Image Link

Notes
If the Product has Variants/Add-ons make sure to calculate the hiked up price for those relevant sheets.

Step 7
From the "Products" section in the Merchant Portal, click on "Actions" then "Import Products".
Step 8
Upload the updated cash discount template with the hiked up prices.


How It Reflects?

Applova POS

POS Screen



Sales Order Details


Pay At Counter Receipt (Unpaid Receipt)


Applova Customer Screen


Applova Kiosk

Checkout Screen with Both PAY AT THE COUNTER & PAY HERE



Checkout Screen with PAY HERE

Notes
If the customer selects "Exit the Kiosk & Order at the Cashier", the order will need to be remade at the POS, since cash is not accepted at Kiosks.


Merchant’s New Order Email Notification

Pay Later Receipt


Sales Order Details View on Merchant Web



Customer Email/Printed Receipts