The state Senate Commerce Committee on Dec. 3 OK’d legislation to prohibit businesses from refusing to take cash. While the bill is still far from becoming law, it’s an idea businesses may want to embrace regardless.

Priority Payment Systems Local says zero fee credit-card and debit-card processing can reward cash-paying customers and reduce business expenses to boot.

“With zero fee processing, credit and debit card processing fees are transferred to customers who don’t wish to pay for goods or services with cash,” says Priority Payments Local. “Look at it as: everything you sell is already discounted to the ‘full cash value.’ If customers decide to pay with credit or debit, they pay the full retail value plus tax, the non-cash adjusted amount.”

In a blog post on the company’s website, Priority discusses the pros and cons of zero fee processing. With processing fees already figured into a business’s prices, shifting them to the customer could lower the prices for cash-paying customers.

“For example: let’s say you own a popular coffee shop,” Priority says. “You sell coffee for $4 a cup and are set up with a rate of 3.95% on your zero processing fees program. When your customers purchase that $4 cup of coffee at that rate, they only pay a $0.16 fee. Would you think twice about $0.16 fee if it came down to using cash or the convenience of your credit or debit card? Most people don’t and they don’t stop shopping at businesses because of it.”

Other merchants may not feel comfortable passing along the costs. Every business is different.

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Priority Payment Systems Local is NJBIA’s premier payment technology partner, providing the solutions merchants need to accept and deliver payments. Learn more.