Why are Non Cash Payment Fees being changed?
Per regulations, we can no longer display a line item called 'Non Cash Payment Fee' on the ticket, the cost needs to be built into the goods & services and then we can offer a discount for paying cash.
What is the simplest way to explain the changes to Non Cash Payment (aka NCP)?
If a Color Service is $100, with a $10 Service Fee to cover the cost of product - the client pays the $100, but on the reporting the business has allocates $10 to go towards product costs. Similarly, now if a Color Service was $100, it is now $103.75 and the $3.75 would go towards the cost of card processing but if they pay cash, they will get a discount of $3.75 and either way the worker's goals, reporting and payroll reflect the $100 sale.
Can you give me an example of what the tickets looked like before and how they'll look now?
PRIOR CHECKOUT PAGE
| NEW CHECKOUT PAGE |
Service $100.00
Non Cash Payment $3.75
Non Cash Total $103.75
Cash Total $100.00 | Service $103.75
Non Cash Total $103.75
Cash Total $100.00 |
Non Cash Payment Receipt | Non Cash Payment Receipt |
Services $100.00
Non Cash Payment $3.75
Credit Card $103.75 | Services $103.75
Credit Card $103.75 |
Cash Payment Receipt | Cash Payment Receipt |
Services $100.00
Cash $100.00 | Services $103.75
Cash Discount -$3.75
Cash $100.00 |
Which payment types get the Cash Discount?
Only tickets paid in full with Cash will get the Cash Discount. All other payment types will now calculate NCP, including Gift Redeem, Account Balances, Check, No Sale, etc.
Will all the line items get the NCP fee added?
No, only the Services, Products, Classes, Memberships and Packages will have the NCP added.
The following items will no longer calculate for NCP:
- Gift Sales
- Deposits / Online Deposits
- Prepayments
- Received On Account
- Miscellaneous
- Tips
If I'm not charging NCP on all items, how am I covering the costs for card processing?
NCP is still being collected, but the new update is changing when and how they are collected. Before we were collecting NCP when a Gift or Deposit was sold but not when they were redeemed, now we're calculating NCP when they are redeemed but not sold.
Here are two examples of how we're still calculating the Non Cash Payment Amount, but in a different way:
PRIOR GIFT SALE
| NEW GIFT SALE | PRIOR DEPOSIT | NEW DEPOSIT |
Gift $200.00
Non Cash Payment $7.50
Non Cash Total $207.50
Cash Total $200.00 | Gift $200.00
Non Cash Total $200.00
Cash Total $200.00 | Deposit $200.00
Non Cash Payment $7.50
Non Cash Total $207.50
Cash Total $200.00 | Deposit $200.00
Non Cash Total $200.00
Cash Total $200.00 |
---Gift Redeem--- | ---Gift Redeem--- | ---Account Charge--- | ---Account Charge--- |
Services $100.00
Gift Redeem -$100.00
Gift Balance $100.00 | Services $103.75
Gift Redeem -$103.75
Gift Balance $96.25 | Services $100.00
Acct Charge -$100.00
Acct Balance $100.00 | Services $103.75
Acct Charge -$103.75
Acct Balance $96.25 |
Even if I add the tip from Checkout, it's no longer going to calculate NCP?
Correct - they will not get NCP applied or calculated but our integration with Tippy offers the ability to cover the cost of credit cards for tips and it would be a single swipe for the Inspire Ticket & Tippy Tip.
What if I want my prices to be a round number?
No problem! Simply edit the new Display Price field in the Setup pages or use the new Mass Service Update page to round all the Display Prices.
How is the Display Price calculated?
The Display Price is the Set Price + NCP%, for example if the NCP is 3.75 and the Service Set Price is $100.00, then the Display Price is $103.75.
If my Non Cash Payment Fee is 3.75%, what is my Cash Discount percent?
The Cash Discount percent can be found in Setup > Setup POS & POS Devices. The value is the inverse of the Non Cash Payment fee using this formula: NCP / (1+NCP). If your NCP Fee is 3.75%, then the Cash Discount is 3.61%.
Why isn't the Cash Discount the same as the NCP Fee percent?
If your Display Price is $103.75 and you apply a discount of 3.75%, your total would be $99.86 - which is less than the set price commission would be paid on. From our card processing experts, how it works is your Card Processing Rate and your Cash Discount have to be the same but your NCP Fee can be another rate that would be the inverse to allow the discount to be the set price.
Will Tips & Tax be calculated on the Set Price or Display Price?
Tips & Tax are calculated on the Display Price.