Dual Pricing

Did you know that POS Nation Merchant Services offers dual pricing? Find out what this feature is — and if implementing it is the right move for your small business.

What Is Dual Pricing?

To put is simply, processing fees are passed on to your customers who use credit cards so you don't take the financial hit, rather than your business paying for a percentage of each credit card transaction.

FOR EXAMPLE: When ringing up an item, two prices will be displayed to the customer: $10.35 for credit card payment, and $10 for cash payment.

If the customer chooses to pay with a card, the additional fee will cover the cost of the credit card processing fees (meaning your business will not be paying that fee).

 

Is Dual Pricing Right For Your Business?

  • Competitors - Do you have regular customers? Would they become frustrated if they prefer paying with a card, and go to your competition?
  • Industry Norms - Is dual pricing acceptable in your industry? We've implemented dual pricing most frequently in liquor shops and convenience stores. 
  • More Cash Purchases - Does your small business have the time and manpower to make more frequent trips to the bank?

Dual pricing doesn't work for all business types, so get in touch with your POS Nation product specialist to make sure it's the right move.

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Dual Pricing: The Basics

Before we delve into specifics, let’s clarify what dual pricing is — and what it isn’t. 

Here are three key things to know about dual pricing: 

  1. Dual pricing means offering two prices for items in your store: a card price and a cash price. 
  2. The card price should be your store’s regular price for a certain item. The cash price should be a discounted price. 
  3. Dual pricing does not imply charging a surcharge for card transactions. Instead, you’re simply offering a discount for customers using cash.

Keeping these three principles in mind will help you communicate with your customers more effectively about your store’s dual pricing policy. 

Dual Pricing Do's and Don'ts

If you do decide that dual pricing makes sense for your small business, here's what you should and shouldn't do to ensure you're compliant.

Do

  • Display both cash and card prices at the shelf and the customer display screen.
  • Create a simple sign letting your customers know that you offer a card and a cash price.
  • Set the price within the POS system to be the credit price. This will be discounted when cash is used.

Don't

  • Do not display the cash price on the shelf and products.
  • Do not display a sign that says a percentage will be added to card payments.
  • Do not have the cash price in the POS system and add an additional fee when a card is used.

 

Our team is here to help you make decisions that will benefit you in the long run! Reach out to the merchant services team at 877-727-3548 ext. 6000!

 

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