Cash discount program works by offering customers a discount on the posted price when a customer pays in by cash or check. The key here is to mark the prices on the shelf with processing cost added to it. In that case, if the customer prefers to pay by credit, he or she will pay the exact amount marked on the shelf. This allows business owners to get full payment from the customers, including the processing fee. Cash discount program eventually turns profitable for business owners, as they eliminate credit card processing fees completely and encourage customers to pay by cash or check to get the discount.