Dual Pricing

Today’s consumers always prefer to pay using their credit cards. The ability to simply swipe and go is certainly convenient for them. However, while this might be convenient for the consumer, in today’s inflated economy the extra credit card processing fees for businesses really add up.

Cash discount programs provide a win-win situation for businesses owners and customers alike. Also called dual pricing programs, these programs eliminate these credit card processing fees. This is accomplished by offering the customer cash a discount on their purchase.

With Cash Discount Program, you will have a way to eliminate your processing costs on the entire monthly processing volume when you accept credit card payments. This benefits your business by incentivizing your cash paying customers. This is perfect for the business owner who is looking for ways to boost your profits and lower the fees you pay, you should consider dual pricing programs. Learn more about what our dual pricing program can do for you!

What Are Dual Pricing Merchant Services?

An easy way to quickly understand how dual pricing works is to look at gas stations. Gas stations often post dual pricing on signs that show the difference between the credit price and the cash price. 

The dual pricing model is when a business offers a discount to customers who pay with case. The easiest way to implement dual pricing is with a payment terminal or POS device that is set up to offer cash and credit prices.

Compliance is an important part of dual pricing as the credit card price must be advertised to all customers. Utilizing dual pricing is an effective strategy that can help you offset credit card processing fees. It may require updating the listed prices on your products to ensure your customers understand how much your products or services will cost when they choose to pay with credit cards or cash.

Benefits of a Dual Pricing Program

A dual pricing program has benefits for both businesses and customers.

Cash Discounting Benefits for Businesses

As a business owner, you have a distinctive advantage when you offer dual pricing for your customers. The biggest benefit of cash discounting through dual pricing is that you can reduce your expenses with regard to rising costs of accepting credit card payments.

When a business offers dual pricing, it gets to keep the full amount of the price for the goods it sells. In other words, your profits remain the same as they would if all transactions were paid for with cash. The credit card processing equipment distinguishes the differences and calculates the total between credit card and cash payments. This is then rerouted to the credit card payment processor, which will eliminate the monthly payment processing fees merchants incur for processing credit cards.

Brick and mortar retailers, especially small businesses, have a better chance of remaining a profitable business by using dual pricing. It essentially makes cash the preferred payment method while rewarding customers with a lower cash price.

Dual Pricing and Cash Discounting Benefits for Customers

Your customers will also see the benefits when you offer cash prices that are lower than credit payment prices. When you offer a cash price, it allows you to keep overhead low without raising prices. Alternatively, you would need to increase prices across the board, which would impact all of your customers, even the ones who pay in cash.

Dual pricing gives customers options and keeps you from having to raise prices while burying the costs of processing credit cards into the price for everyone. The key is in disclosing the cash price compared to the credit card price, which is not only necessary for compliance but also allows customers to choose the way they want to pay.

Understanding the Importance of Compliance for a Dual Pricing Model

When you offer these payment options, it is important to understand the importance of complying with credit card laws. Since these are always changing, it helps to have the team at CashDiscountProgram.com on your side to help your business stay in compliance. Since we are your credit card processor, you won’t have to worry that you are not following the laws for implementing cash discounting.

How Do Dual Pricing Credit Card Transactions Work?

With CashDiscountProgram.com, it’s easy to start dual pricing. The first step is determining your cash price for every item you sell. Then you will add a percentage to your cash price that a customer pays for using a credit card. Many POS solutions do this calculation for you, and ours at CashDiscountProgram.com will effortlessly compute the amount.

If you decide that you have an item that you want to sell for $20, such as a t-shirt, coffee mug, or even a meal on your menu, this would be the cash price. If a customer chooses to pay with a credit card, they will pay that $20 multiplied by the percentage added. Ultimately, it amounts to just a little higher than the cash price, which is the exchange for accepting credit cards as payment. However, you must disclose the cash discounting price to your customers.

This difference between cash and credit prices is what pays for your processing and program costs. At the point of checkout, your POS will detail the cash price and the credit price. Your customer then gets to choose their payment method, and then the POS will print their itemized receipt.

What is Needed in Order to Offer Dual Pricing in Your Business?

If you want to start offering dual pricing, you’ll need the following things to get started. 

A Merchant Services Provider

A merchant services provider gives you a flat rate percentage fee that helps align your cash prices without adding additional charges. 

Credit Card Processing Equipment

The credit card terminal needs to be able to support dual pricing for regular and cash prices on every item you sell. It will also need to provide accurate reporting for your business operations.

Clear Signage of Cash Price

Signs must be posted at all of your POS terminals to alert customers of the savings they can get if they pay with cash instead of the posted price.

Employee Training

Finally, you should educate your employees on dual pricing. This will allow them to promote the program and answer any questions from your customers.

When you need a cash discount program implemented in your business, CashDiscountProgram.com can help. We evaluate your systems and recommend the right systems to help support dual pricing while handling your operational needs.

Get Started on Dual Pricing with CashDiscountProgram.com

When you open a merchant account, you need a reliable payment processor to ensure you’re making the best investment. Giving your customers a discount for paying with cash is as easy as signing up with CashDiscountProgram.com.

Our customer service team will assist you by providing you with all the equipment you need at no cost, allowing you to start applying these discounts quickly. We will also give you an amount that fits with the normal processing fees, usually around 3% or 4%, which varies depending on your normal average credit card sales.

You don’t need to worry about signage either as we will provide this to you, allowing you to post them at your POS terminals or on the entry point of your store. These signs will tell customers about the discount they’ll receive if they pay in cash.

CashDiscountProgram.com is a legally-compliant way to relieve the burden of the processing fees imposed by credit card companies. Our high-quality payment solutions have helped many business owners reduce their overhead burden. We also reduce the risk even further by allowing you to cancel at any time without obligation. With flexible and innovative options like these, you get to stay ahead of the competition. Start making your business work more for you and let CashDiscountProgram.com help with dual pricing on your side. Contact us today to get started for little to no cost!