Dual pricing is a strategic pricing model where businesses offer two distinct prices for the same product or service depending on payment type: cash or credit. You may have seen this pricing strategy at your local gas stations. Two prices saves you money by removing processing fees for cash and passing them on to customers for credit.
Two price points mean you can cater to a broader spectrum of your clientele. Whether it's regulars who are fans of cash or businesses that lean on credit, you're ready for both.
By incentivizing cash payments, you can significantly reduce the costs associated with credit card transactions. This means you keep a bigger chunk of your earnings without having to pay those often hefty processing fees.
Clearly showing your customers the costs associated with different payment methods can bolster their trust. It’s a direct way of saying, “We value honesty and clarity in our transactions.” In a world where hidden fees are common, your transparency can set you apart.
Customers love options. Whether they're chasing a cash discount or racking up those credit card points, choice is king.
Offering clear, transparent pricing choices helps customers feel informed and valued. They'll appreciate knowing they can pick a deal that best fits them.
In the eyes of the consumer, a chance to save or gain added benefits wins brownie points.
With Dual Pricing the customer can pay a 4% fee for using a credit card, which covers the cost of the processing fees. On a $10 transaction the customer would pay $10.40. You’d be funded $10.40 and pay a fee of 3.846% (40 cents) so you get your full $10 and effectively pay nothing for that transaction.
Alternatively, the customer can choose to pay in cash and avoid paying the fee. The discount for their cash payment would appear clearly on their receipt.
Trust is the bedrock of business. With Polaris Payments, every transaction, be it the shuffling of bills or a beep of a card, adheres to stringent regulations. Rest easy knowing that while you're maximizing profitability and choice, we are helping to ensure compliance.
Let's chat about how Polaris Payments can help you navigate this strategy seamlessly.
Get Started Today
