What are Tender Based Discounts and Surcharges?
This functionality equips retailers with the ability to define discounts and surcharges based upon tender types used by customers for payment of their purchases at the POS.
For example, if a transaction with a value of less than $50 is paid using credit card then customer will be required to pay an additional transaction surcharge of $5. However, if a transaction of more than $1,000 is paid using cash as mode of payment, then a discount of 2.5% will be applied on the total transaction value.
Tender based discounts and surcharges can be defined for following tender types:
· Cash
· Check
· Credit Card
· Custom (Only when Custom tender currency is iVend Base Currency)
· Debit Card
· EBT
· Travellers Check
· Voucher
Sample Business Case Example
ACME Inc. wants to have a mechanism to discourage the use of a credit card as a payment means for small value transactions and promote cash payments for large value transactions. They develop a policy wherein if a transaction with a value of less than $50 is paid for using a credit card then the customer will be required to pay an additional transaction surcharge of $5. However, if a transaction with a value more than $1,000 is paid using cash as the mode of payment, then a discount of 2.5% will be applied on total transaction value for the customer.
Let us see how the tender based discounts and surcharges can help in implementing this policy.
Tender Based Discounts
To define Tender Based Discounts in iVend, follow these steps:
1. Log into the iVend Management Console and go to: Administration > Financials > Payment Type
The Payment Type Search window appears.
1. Select the desired tender type and press the [F4 Edit] button to enter into edit mode.
The Payment Type window appears.
1. Choose the [Discount] button to define discounts for the selected tender type.
1. The Payment Discount Setup window appears.
The following table provides an explanation of the fields and buttons that appear on the Payment Discount Setup screen.
Field Name | Description/Activity |
Discount Type | Choose the Discount Type from the dropdown; Amount or Percentage. |
Discount | Based on selection made in previous field, enter either the discount amount or percentage value. |
Date From | Select the business date from which the discount will be applicable. |
Date To | Select the business date to which the discount will be applicable. |
Enable | Select the checkbox to enable the discount configuration. |
Payment Greater Than | Enter the payment value threshold that must be reached before the discount will be applicable for transactions having this payment type, i.e. the value must be greater than the entered value. |
Buttons |
[Add] | This button enables the user to add a new discount row. |
[Delete] | This button enables the user to delete an existing discount row. |
[Ok] | This button saves and updates changes made to the Discount Setup screen to the database and closes the window. |
[Cancel] | This button closes the window without saving any changes and will not update the database. |
1. Choose [Add] to add a discount row to the configuration.
2. Enter the Discount Type, Discount Value, Date Range
3. Select the Enabled checkbox to make the discount line active.
4. Set the value threshold that needs to be reached before the discount will be applied, in our example we have set this to be $1000.
5. Multiple discounts can be configured for other date ranges if desired.
6. Choose [Ok] to save the changes made on the Payment Discount Setup screen and to return to the Payment Type window.
7. Choose [Ok] on the Payment Type window to save the changes made.
Applying Tender Based Discounts at the POS
1. At the POS add one or more products to a sale transaction, ensuring that the total value will be greater than the value that we defined in the Payment Greater Than field in the Discount Setup window for the Cash type tender.
1. Press the [F12 Payments] button.
2. The Payment Offers screen appears.
All the tender based Discount and Surcharge offers applicable on the transaction will appear on this screen.
1. Select the desired option and choose [Ok].
Alternatively, choose [Cancel] to close the window, which will then present a list of all available tenders and the user can proceed to select any that are available to process the payment from the customer and complete the transaction.
5. The standard Tender Details window will then appear with the discount payable.
6. Enter tender details as normal and complete the transaction.
Applying Tender Based Surcharges at the POS
Defining Tender Based Surcharges in iVend
1. Log into the iVend Management Console and go to: Administration > Financials > Payment Type
The Payment Type Search window appears.
1. Select the desired tender type and press the [F4 Edit] button to enter edit mode for the payment type.
The Payment Type window appears.
1. Choose the [Surcharge] button to define surcharges for the selected tender type.
1. The Payment Surcharge Setup window appears.
The following table provides an explanation of the fields and buttons that appear on the Payment Surcharge Setup screen
Field Name | Description/Activity |
Surcharge | Choose radio button (…) to open the Surcharge Search window and select a surcharge. |
Date From | Select the business date from which the surcharge will be applicable. |
Date To | Select the business date to which the surcharge will be applicable. |
Enable | Select the checkbox to enable the surcharge configuration. |
Payment Less Than | Enter the payment value threshold where the surcharge will be applicable for transactions having this payment type, i.e. If the payment is less than this value then the surcharge will be applied. |
Buttons |
[Add] | This button enables the user to add a new surcharge row. |
[Delete] | This button enables the user to delete an existing surcharge row. |
[Ok] | This button saves and updates changes made to the Discount Setup screen to the database and closes the window. |
[Cancel] | This button closes the window without saving any changes and will not update the database. |
5. Choose [Add] to add a surcharge row to the configuration.
6. Select a Surcharge from the look-up and set the Date Range that the surcharge will be applicable for.
7. Select the Enabled checkbox to make the surcharge line active.
8. Set the value threshold where the surcharge will be applied if the payment is less, in our example we have set this to be $50.
9. Multiple surcharges can be configured for other date ranges if desired.
10. Choose [Ok] to save the changes made on the Payment Surcharge Setup screen and to return to the Payment Type window.
11. Choose [Ok] on the Payment Type window to save the changes made.
Applying Tender Based Surcharges at the POS
1. At the POS, add one or more products, ensuring that the transaction total is less than the threshold set in the Payment Less Than field on Payment Surcharge Setup window for the Credit Card type tender.
2. Press the [F12 Payments] button.
3. The Payment Offers screen appears.
All the tender based Discount and Surcharge offers applicable on the transaction will appear on this screen.
4. Select the desired option and choose [Ok].
Alternatively, choose [Cancel] to close the window, which will then present a list of all available tenders and the user can proceed to select any that are available to process the payment from the customer and complete the transaction.
5. The standard Tender Details window will then appear with the surcharge payable.
6. Enter tender details as normal and complete the transaction.