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Cash Discounting

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Chapter 1. Introduction

Some businesses have a policy of either giving a small discount to customers who pay with cash (1%-3%) or posting prices as cash prices and then using an auto-grat to charge a 1%-3% “bump up” for customers who want to pay with a credit card. This guide will walk you through two methods.

Note: offering cash discounts or charging a credit card fee may be in violation of your agreement with your integration or your acquirer. Rules and legal restrictions differ depending on country and jurisdiction. You should consult your attorney before implementing a method of cash discounting.

Chapter 2. Cash Discount

Section 1. Create the Cash Discount

1.  Tap Admin | Admin Settings.

2.  Tap Menu and Discounts.

3.  Tap the Add + icon at the top right.

4.  Give your discount a name like Cash Discount.

5.  Give it a percentage discount, for example you give a 3% discount on any cash transaction.

6.  Select which Menu Categories this discount applies to. Tap the categories this discount should be available to. Do not tap categories you want to exclude. For example, you may not want to give a cash discount to alcoholic beverages purchased or merchandise. If you sell gift cards, you will not want to cash discount a gift card category.

7.  If you want to limit who can apply the Cash Discount, tap Staff Types.

8.  Select which staff types this discount is available to. For example, tap Manager.

9.  Tap Save.

Section 2. Using the Discount

1.  Do not apply the discount to individual items. Tap Checkout.

2.  Tap Discount/Comp All Items.

3.  Tap Cash Discount.

4.  In the pictured example, we can see our 3% discount is applied pre-tax. As well, items we excluded (alcohol items) do not have the 3% discount applied.

5.  You can close the bill then cash or credit, per normal.

Chapter 3. Prices Posted for Cash Payments

In this example, we’ll look at how to set up an auto-grat that can be used to bump up your cash prices at checkout time. This method assumes you do not use the auto-grat for large parties. Unlike the discount method, you cannot exclude menu items. All items ordered get a percentage increase with this method.

Section 1. Setting the Auto-Grat

1.  Tap Admin | Admin Settings.

2.  Tap Menu and tap Gratuity Settings.

3.  For the Minimum Party Size, set it for a number like 99. This ensures it won’t trigger for any large seated party.

4.  In the Default % field, set the percentage increase you want to apply for credit card payments. For example, enter 3 for 3%.

5.  Change the Gratuity Display Name to something explanatory for the guest check. For example, enter Card Fee.

6.  Gratuity Mode should be set to Calculate Tax on Gratuity. Since this card fee is ultimately a price increase, you need to charge applicable taxes on the additional money charged.

7.  Gratuity Calculation should be set to Post-Discount. You want to recoup that credit card fee charged on the actual price charged to the card. For example, you discounted a $10 app to $5 because of a Happy Hour promotion. You would charge $5 to the credit card, not $10. The credit card would charge you 3% to facilitate the $5 charge, not a $10 pre-discount charge.

8.  Tap Menu to exit and save these settings.

Section 2. Using the Card Fee Auto-Grat

1.  Tap Checkout.

2.  Tap Include Gratuity.

3.  TouchBistro will default to the 3% Card Fee setting.

4.  Tap Done.

5.  The 3% gets applied to all items and gets listed on the guest check as Card Fee (or whatever term you used on the Gratuity Settings screen).