If you’ve visited a gas station in the past decade or so, chances are, you’ve experienced dual pricing. Dual pricing is a merchant processing feature that presents a cash price and a credit card price to the customer, allowing them to decide on their preferred payment method. Many gas stations in the U.S. have offered–and are still offering–both cash and credit prices. It’s a strategy that makes a lot of sense for business owners, as they retain 100% of the price for any product they sell, regardless of how the customer pays for it.
Until recently, dual pricing wasn’t an option for most other businesses, such as restaurants and retailers. There were two big reasons for it: limitations of POS software and the unpredictability of processing costs on each transaction. If you were selling many different items, pricing your merchandise under a dual pricing model was all but impossible.
Well, this is no longer the case. Through our ConsumerChoice program, we are empowering businesses with dual pricing capabilities; helping them lower or even in some cases, eliminate processing fees all together. Here’s how a dual pricing program can benefit your business and your customers.
Benefits for Business Owners
The main benefit of a dual pricing program for business owners is that you don’t need to worry about the rising costs of accepting payments. You’d profit from all transactions as if they were cash transactions. Fees such as PCI compliance fees, transaction fees, and batch headers are all contained in your flat rate, eliminating any surprises.
When your customers check out, your POS will keep a total of the cash price and the regular price. Once the customer chooses his or her payment method, the POS prints the itemized receipt with the corresponding prices.
Benefits for Customers
In theory, a lot of people aren’t particularly enthused about the idea of a cashless society. However, when you offer them the same prices for cash and electronic payments, they’re more likely to opt for the second option to get rewards and benefits. These types of conscientious customers will enjoy getting a discount of 4-5 cents on the dollar to pay in cash.
Other than price savings, your customers will also like the fact that you’re fully disclosing both price options to them. Transparency hasn’t always been a priority in dual pricing systems, so being as open as possible can go a long way in winning their affection.
To learn more about our ConsumerChoice program and how dual pricing can potentially create a substantial savings for your business, please get in touch with our office today.