How dual pricing merchant services can save your business money
Running a business is tough enough without credit card processing fees eating into your profits. That’s where dual pricing merchant services come in — a smart way to cut costs while keeping things transparent for your customers.
Here’s how it works: When making a purchase, customers see two prices — one for cash payments and a slightly higher one for card transactions, which includes the processing fee. This way, companies can reduce fees while giving customers a choice.
For small and medium-sized businesses, where every dollar counts, these fees can add up fast. A dual pricing program helps offset those costs while encouraging more cash payments — good news for both business owners and customers. No wonder more merchants are making the switch! This pricing strategy has gained traction among merchants looking for sustainable ways to manage operational costs while staying competitive.
Let’s take a closer look at how it works.
What is dual pricing and how does it work?
Dual pricing allows merchants to offer different prices based on payment methods: a lower cash price and a higher card price that accounts for processing fees. This system has many benefits and operates similarly to cash discounting, which encourages customers to pay with cash to save money.
Instead of absorbing credit card processing costs themselves, businesses implementing dual pricing shift the cost to the customer when they choose card payment. Customers see both prices displayed and can make an informed choice. This approach ensures transparency while protecting the company’s bottom line.
Many businesses worry about legal compliance when implementing a dual pricing model. The good news is that dual pricing is legal in most states and jurisdictions, provided merchants follow proper disclosure practices. Organizations should ensure they display both cash and card prices clearly and provide verbal explanations when necessary.
The benefits of a dual pricing program for your business
Reduces processing fees
By passing card processing fees to customers, companies can drastically cut down on their operating costs and improve profit margins. For many small business owners, processing costs can amount to thousands of dollars annually. By adopting a dual pricing strategy, organizations can reinvest these cost savings into their operations, whether for staff wages, inventory or marketing.
Encourages cash payments
Encouraging cash transactions helps companies reduce their reliance on credit card processing networks, which in turn lowers overall transaction fees. Cash payments also provide immediate liquidity, eliminating the wait time associated with card transactions being processed and deposited into business accounts. Moreover, businesses that handle more cash payments can minimize chargebacks and disputes, which can be a hassle with credit card payments.
Simplifies tracking & reporting
With clear distinctions between cash and card transactions, businesses can streamline bookkeeping and financial reporting. Many dual pricing POS systems automatically categorize sales by payment method, making it easier for business owners and accountants to track revenue and expenses. This level of clarity can also simplify tax reporting and financial forecasting.
Enhances customer transparency
By offering clear payment options, businesses can provide customers with control over their preferred payment method, improving overall customer satisfaction. Consumers appreciate transparency, and when they understand why a pricing difference exists between cash and card payments, they are more likely to accept the policy. Clear communication — through signage, receipts and verbal explanations — plays a key role in maintaining customer trust.
How to implement dual pricing in your business
Choose the right tools
Implementing dual pricing requires the right merchant services and POS systems that clearly display both cash and card prices. Not all payment processors support dual pricing, so it’s crucial to choose a provider that offers the right technology. That’s where Sekure Payment Experts and the Edge Program come in.
The Edge Program makes it easy for businesses to adopt dual pricing with automated price adjustments, seamless transaction records and user-friendly POS systems. This program is specifically designed to help companies thrive in today's fast-paced digital landscape. With the right setup, you can reduce costs while keeping pricing transparent for your customers.
Train your staff
Educating employees on communicating the pricing model to customers ensures smooth transactions and a positive shopping experience. Employees should be prepared to address questions about why the pricing difference exists and how it benefits both the brand and its customers. Providing them with scripted explanations and FAQs can make these conversations easier and more effective.
Communicate with customers
Clear signage and verbal explanations help customers understand the benefits of paying with cash. Businesses should place signs at registers, on receipts and in other visible areas to ensure customers are aware of the policy before reaching checkout. Transparent communication minimizes confusion and ensures a smoother customer experience.
Ensure compliance
Work with a reputable merchant services provider to ensure your dual pricing model aligns with legal requirements. Different states and regions may have specific regulations regarding dual pricing disclosures and implementation. A reliable provider can help businesses navigate these requirements and implement best practices to stay compliant.
Make the switch to dual pricing today
Switching to a dual pricing program is a straightforward way to reduce credit card processing fees and improve business profitability. With the right merchant services and payment processing tools, your brand can implement this pricing strategy seamlessly.
Beyond cost savings, dual pricing enhances operational efficiency, increases cash flow and improves customer satisfaction. As more businesses embrace this payment processing cost reduction strategy, customers are increasingly familiar with it, making implementation smoother and more widely accepted.
If you’re ready to take control of your processing fees and boost your bottom line, consider working with us to guide you through the transition.
Contact Sekure Payment Experts to learn about the Edge Program and start saving on credit card processing fees!
