How is Dual Pricing Different from a Cash Discount?
While both models aim to offset processing costs, they differ primarily in how prices are presented and how the transaction is calculated at the point of sale.
Dual pricing is a strategic approach where we enable your business to offer two distinct prices: a lower price for customers paying with cash and a higher price (which includes a card-present surcharge) for those paying with credit cards. This model creates a transparent structure where cardholders cover the associated processing expenses, such as interchange fees and card brand charges, through a specific line item on their receipt.
In contrast, a Cash Discount Program typically involves offering a discount off the standard posted price when a customer pays with cash. While both methods help manage thin margins in retail or restaurant environments, the key differences include:
- Transparency: Dual pricing provides clear line-item disclosures, ensuring customers see exactly why the total differs based on their payment method.
- Compliance: Both models require adherence to specific card network rules. With our dual pricing solutions, such as the Clover Flex Dual Package or Lavu Dual Pricing Integration, we ensure the software automatically calculates these amounts to maintain merchant surcharge compliance.
- Implementation: Dual pricing often uses specialized hardware or software configurations to show two prices simultaneously, whereas a cash discount focuses on a reduction from a single listed price.
We offer these solutions with competitive rates, no setup fees, and no cancellation fee. To see which model fits your business, you can contact us for a consultation, and you may even qualify for free Clover placements.
Related FAQs
-
What is Interchange plus Pricing for Merchants?
Read More »: What is Interchange plus Pricing for Merchants?Interchange plus pricing is a transparent and cost-effective payment processing model where merchants pay the base interchange rate set by card networks (such as Visa and Mastercard) plus a fixed markup from the processor. This model is often referred to…
-
What are the Costs of Real Time Payment Processing?
Read More »: What are the Costs of Real Time Payment Processing?Based on the provided information, the costs associated with real time payment processing through The POS Brokers are structured to be highly accessible for businesses. The following details outline the pricing and fee structure: No Setup Fees: The implementation of…
-
What Platforms Support Real-time Payments in the Us?
Read More »: What Platforms Support Real-time Payments in the Us?In the United States, real-time payments are primarily supported by two major networks that facilitate immediate, 24/7/365 electronic fund transfers: The RTP Network: Established by The Clearing House, this network offers 100 percent uptime and supports instant transactions of up…
-
What are the Advantages of Interchange plus for Payment Processing?
Read More »: What are the Advantages of Interchange plus for Payment Processing?Interchange plus pricing offers several significant advantages for payment processing, particularly for high-volume businesses such as restaurants and retail stores. The primary benefits include: High Transparency: This model itemizes costs into the base interchange fee set by card networks and…
-
What are Real Time Payments and What are their Benefits?
Read More »: What are Real Time Payments and What are their Benefits?Real time payments are electronic fund transfers that enable immediate, 24/7/365 processing, allowing transactions to settle between accounts in seconds. Unlike traditional banking which is restricted by operating hours, these payments offer end-to-end finality anytime, including weekends and holidays. Major…

