Anatomy Lesson - Channel Tender Discounts

One of the newest discounts that the Retail and Commerce pricing engine has introduced is the Channel Tender Discount, or a discount based on the payment method selected to pay for the order. In this I'll talk about how to set it up!

One thing to note on this is that it is only looking at retail payment methods and NOT Accounts Receivable methods of payment, so make sure that you're using call center, POS, or the online store capabilities for this discount type.

Setup - General

This is a simple one to set up. When you create a new tender discount, you'll need to specify which tender type will receive the discount. If you select your credit card payment method, you'll optionally need to select the card type specifically that will receive the discount (like Visa in my example below).

Like other discounts, you can specify a unique GL account for these, but other similarities with other discounts don't exist outside of date effectivity. That's because these discounts don't interact with other discounts and will always apply if the appropriate payment method is selected:

Setup - Validation Period

The validation period is the same as an effectivity date set like other discounts. Generally speaking, these are the standard effectivity dates, but you have the ability to specify advanced effectivity validation periods.

Setup - Threshold discount tiers

The interesting part of this discount is that you can tier your discount. However, in my experience the use case for this is something like the following statement:

"Use [insert method of payment here] and get 5% off your entire order"

That statement inherently means any order that costs any amount of money. That being the case, the way I usually set these up is as follows:

The above setup means that any order over a penny will receive a 5% discount off the order.

Another thing to note is that we do not have the ability to change the discount offer type (discount amount vs. percentage off, for example). This is strictly going to be a discount percent.

Discount Use

After placing a normal sales order in call center, for example, you'll select your payment method (assuming you have order completion enabled, else why would you set up the discount in the first place).

If you select that method of payment that has a discount, you'll receive a new set of views that will show how much the customer will actually pay if that payment is used. Note that the payment has to be made in full in order for the discount to qualify for the discount. If a partial payment is being used the discount won't apply. Here's what the payment screen looks like after I've selected the Visa that I set up in the above discount:

Summary

This discount is good for a lot of situations depending on the industry. For large department stores that have store credit cards this is a common thing (think Target having a 5% off for their red card).

Don't forget that the price group must be assigned appropriately like all other Retail and Commerce discounts.

As always, if you have any other questions please reach out!