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Guide to the Cash Discount Program for Food Trucks

Guide to the Cash Discount Program for Food Trucks

If you are a small business owner, it is high time you switched to cash discounts on POS systems as the payment method. 

The global economy has become increasingly volatile over the years, with some days being prosperous for all business owners and others, due to events such as a pandemic, experiencing difficulty making ends meet. In light of this, it’s crucial that you always have some savings set aside.

Recent data also shows that over 99.2% of customers are willing to pay through a cash discount POS system. Thus, entrepreneurs like food truck owners can significantly boost their businesses by taking advantage of incentives such as cash discounts.

Food truck businesses avoid using credit and debit cards for a variety of reasons. Credit cards offer convenience to the customer as an instant payment option, but they also have drawbacks, the most significant of which are the ever-increasing transaction fees.

Learn how and why you should implement a cash discount program for your food truck business in this article.

Guide to the Cash Discount Program for Food Trucks

What Are Cash Discount Programs?

Programs that offer discounts for payments made in cash have been available for quite some time. Customers at most gas stations are accustomed to cash discounts and know how to use them because these programs are widely used to help pay for fuel. 

As a small business owner, you must keep your mind open to all payment methods. Doing so will help you find a POS system for your food truck that is feasible and can save money. Cash discounts fit the profile and can help your food truck business gain the momentum it needs to stay in the market.

By lowering prices for clients who pay with cash, a cash discount program helps you avoid or lower card transaction fees while also boosting your profit. In addition, you get to pass on the additional transactional fees to card-paying customers, which enables you to save money. The program displays both the standard and discounted prices, so the customer can easily decide which is better. 

You should include payment information on the receipt you give to the customer. It will show them how much they can save by opting for a cash transaction. If they choose to use an alternative payment method, they will be aware of the associated processing fee. With this comparison in mind, you can better convince them to pay with cash, which will, in turn, boost sales for your food truck.

Benefits of Cash Discount Programs

Following are some advantages of having a cash discount program on your food truck.

More Profits

Your food truck business may greatly benefit from implementing a cash discount program. Your daily profit rises when clients pay you directly. As a result, you can keep more of your own money and avoid the fees charged by debit and credit card companies. 

As a small business owner, you are mostly operating on a budget. Therefore, your priority is to save every penny to sustain your business and make progress. An increase in daily income can help you bring innovations to your small business.


Cash discounts can bring you more customers and make your food truck legendary. Their satisfaction and happiness soar when they realize they are saving money by paying in cash. 

Such clients are bound to return to your food truck. Moreover, they can also contribute to your marketing strategies. Using word of mouth, they can help other people know about the cash discounts at your food trucks. 

As a result, people become more inclined to get food from your truck. If you are also good at your trade and serve delicious food, you will experience exponential growth.

No Additional Charges

A food truck POS system for cash discounts can help you avoid credit card processing fees. There is a processing fee for every transaction made at your food truck using a credit or debit card. 

The fee is proportional to the quantity of goods sold from the truck. For this reason, food trucks and other businesses that prefer cash discounts avoid the 3% processing fee. 

They handle the cash and do not have to worry about the rising expenses on different cards. Moreover, once you choose the cash discount options, all these aspects become the responsibility of the bank granting you the merchant account.

In cash discount programs, customers paying with cards are significantly less common than those paying in cash, significantly reducing the number of cashback occurrences. This helps you save more money and avoid fraud while you’re at it.

Cash Flow

Guide to the Cash Discount Program for Food Trucks

Cash discounts enhance the amount of money that flows into your business. Entrepreneurial endeavors like owning a food truck can require regular maintenance. You must ensure that you have all the ingredients and backup just in case. Moreover, your truck needs to be immaculate to run the business smoothly. Therefore, you must possess the cash to deal with all these tasks and consistently provide reliable services. 

In the case of other payment methods, the entrepreneurs have to wait for a certain period before they can get their money. The owners must also ensure that they have some spare cash on hand in case of emergencies in this time frame. 

Having a cash discount POS system can strip away these worries and help you focus on the business. You can access your money and keep it nearby to solve any crisis and keep your business afloat.

Challenges of Having a Food Truck

There are many obstacles that every food truck business must overcome. As inflation rises, however, these businesses are more vulnerable to market fluctuations and other challenges. You, as a truck owner, must therefore deal with these issues, identify appropriate responses, and maintain efficient consistency in your progress.

Maintaining the Truck

Like the other massive restaurants in your area, you must ensure that your truck remains in exceptional condition. Any fault in the vehicle can halt the progress of your business.

Keeping the truck thoroughly clean and pathogen-free is another aspect you must tackle. Food trucks are exposed to the outdoor air and the surrounding environment. Therefore, any pathogen in the region can contaminate the kitchen area and even spoil the items on the food truck’s menu. 

You must have disinfectant and use alcohol swabs to kill any microbes present in your food truck catering system. At closing hours, you must also fumigate the truck to discard all the infectious organisms accumulated during the day.

Active Management

You need a few highly active food truck operators. They must instantly deal with the customers and keep the services swift. The employees must efficiently update the food truck menu, take orders, pass them along, and provide the food. 

There should be at least two or three people working on the truck. However, the number depends on the size of your vehicle and workload. You need to make sure there are always at least two cooks on duty. A few food truck operators should be at the serving counter taking and delivering orders via food truck POS systems.

Cost of Services

Over time, food trucks are also opting for digital technology and tools to back up their businesses. These include online services, card-processing systems, and inventory management. Though these strategies help them secure their business and make it more efficient, they come at a specific cost. 

As a startup, these costs can reduce your profit margins and impact your budget. Small businesses also need to save additional money to combat unforeseen situations threatening their survival and stability. Therefore, you have to opt for specific ways to minimize these costs and provide similar features to skyrocket your business’s progress.


Since inflation has made things so much more difficult, many small businesses have resorted to taking out loans to stay afloat. The rising costs have made it difficult for restaurants to stock up on their inventory. As a result, delivering the products and inventory management become even more problematic. 

The startups then have to raise the prices of their goods, which adversely impacts their business. Penetrating the market requires you to provide lower costs and quality services. Inflation has caused owners to pay more or the same price for a lesser value. As a result, they either get below-average products or ones with a lesser quantity.

Are Cash Discount Programs Right for You?

It would help if you considered the following factors before using a cash discount POS system at your food truck.

Requirement for Cash

Constant cash flow can help you significantly promote your business. It can help in inventory management, bill payment, and budget development. In addition, having access to cash can be helpful in the event of a financial emergency that slows down your company’s operations. 

Using a cash discount POS system will also reduce the additional transactional fees. As a result, you can maximize your profit margin and be ready for any problem in the future. However, you should be prepared to handle the cash. 

Keeping up with the register, storing the amount, and then taking it to the bank are some aspects that require planning. Therefore, you need trustworthy and active employees at the counter to ensure that the cash flow remains smooth. 

Type of Customers

Guide to the Cash Discount Program for Food Trucks

The customers that frequently visit your food truck can also help you determine how much the cash discount POS system can help you. Cash discounts are a great way to bring in new business and keep your current clientele coming back.

On the other hand, you should avoid alienating card-paying customers, who might prefer earning bonus points through credit card purchases. You must therefore evaluate the proportion of these customers.

Analyzing how many customers regularly come to your truck and pay in cash can help you swiftly set up the discount program.

Furthermore, in these circumstances, a dual payment method may be useful. You can help your customers out by accepting both cash and credit card payments. When you present your customers with options, they will likely select the most popular.

Therefore, the dual payment model can encourage customers to pay in cash at the food truck and avail of discounts.

Starting the Cash Discount Program

You can follow the steps below to introduce a cash discount POS system at your food truck.

  • Find an expert merchant processor
  • Get educated on the cash discount programs to understand each aspect
  • Walk the merchant processor through your business model to help them set the suitable cash discount program for you
  • Select all the equipment and technological resources to implement the program at your food truck
  • Once you get the equipment, contact the processor and ask them to install the food truck POS system
  • Earn cash and start saving up

Requirements for Setting Up a Cash Discount Program

Food truck owners don’t have to go overboard with a cash discount program. However, they need to follow the laws of the county in question. They should also be ethical and fair when offering discounts.

Afterward, they can get a food truck POS system that helps them handle the cash and orders.


Following are some alternatives for your food truck’s cash discount POS systems.

Setting Up a Purchase Limit

Reducing your payment processing fees is essential if you want to stay away from cash discount programs. So that you can maximize your earnings and minimize your costs, you can set a purchase limit for each credit card payment.

Increasing the Prices

Further opportunities to cut costs and boost profits exist. You could, for instance, charge more for some items in order to cover the cost of credit card processing. Nonetheless, this strategy may hinder expansion and cause customers to seek out competing food trucks.

Customer Response

Over time, consumers have developed a strong preference for cash discounts. More companies are adopting cash discount payment models as a result. Some even opt for dual-payment methods.  These business owners, however, have also seen the positive reception cash discounts receive from their clientele. 

When you present the bill to the customers, and they analyze the difference due to fee deduction, they choose to pay through food truck POS systems for cash.

Moreover, the cash discount POS system at gas stations has also familiarized most of the population with the process. Therefore, people usually have no reservations when switching from credit cards to cash discounts.


If you want your food truck business to succeed, you should take advantage of cash discounts. The price cuts will increase your profit margin and bring in new customers. Therefore, immediately implement the food truck POS system for cash discounts if you want to save money and move forward in the market.

You can dive deeper into this topic by visiting our credit card processing knowledge library