As a business owner, you know that accepting credit and debit cards comes with processing fees. These fees can eat into your profit margins, making it difficult to grow your business. However, there is a solution that has been recently approved by Visa and Mastercard: Dual Pricing.
Dual Pricing, also known as Cash Discount or Discount for Cash, allows businesses to pass on all of the processing fees to the customers who choose to pay with a card. This means that customers who pay with cash or check will receive a discount, while customers who pay with a card will pay the full price.
It has become widely accepted post-COVID. Customers have become accustomed to paying for the convenience of using their cards, and many even prefer it over cash or check. Additionally, customers can earn points and rewards when they use their cards, making it a win-win situation for both the customer and the business.
By implementing Dual Pricing, businesses can cut their processing fees by up to 100% and put 4% or more back into their profit margin. This can make a significant impact on a business's bottom line, allowing them to reinvest in their business and grow their operations.
It's important to note that Dual Pricing must be clearly communicated to customers, either through signage or at the point of sale. Additionally, businesses must ensure that the discount offered for cash or check payments is not greater than the processing fees they would have incurred for card payments.
In conclusion, Dual Pricing is a Visa Mastercard approved method for passing on processing fees to customers, and it has become widely accepted post-COVID with a significant impact on a business's profit margins. By implementing Dual Pricing, businesses can cut their processing fees and reinvest in their operations, ultimately leading to growth and success.
Learn how to drastically reduce your legally card fees,contact KenGivens@USmsTexas.com or call 888-995-3995.