How Dual Pricing Works
Dual Pricing: Eliminate Credit Card Processing Fees
With dual pricing, you offer customers two options: a cash price and a card price. When a customer pays by card, a 3.5% surcharge is added to cover processing fees (interchange rates/card network fees, merchant service provider fees, bank sponsorship fees, reward points).
This strategy shifts the cost of card payments from your business to the customer — so you keep more of every sale.
Core Benefits
By implementing a dual pricing model, business owners can offset or eliminate the impact of credit card processing fees on their profit margins. This can result in significant cost savings, especially for businesses with high transaction volumes.
Dual pricing allows for transparent communication with customers. The cash discount price reflects the actual cost of the product or service, while the credit card price clearly indicates that a premium is added to cover processing fees. This transparency can foster trust and understanding with customers.
For customers who choose to pay with a credit card, the business adds a 3.5% surcharge to the sale. This higher price covers the credit card processing fees imposed by the payment card networks (e.g., Visa, MasterCard, American Express and Discover) and the merchant service provider. The business effectively passes on the cost of processing credit card transactions to customers who use this payment method.
Chargebacks occur when customers dispute credit card charges, often leading to financial losses for businesses. Since cash payments are not subject to chargebacks, implementing a dual pricing program reduces the risk of these disputes and potential losses.
Calculate your actual savings:
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Smartpay is a payments service provider specializing in credit card processing solutions for retail and online businesses.
Our mission is to provide every merchant the opportunity to lower their credit card processing fees, with traditional interchange plus pricing or to eliminate their fees altogether, with our dual-pricing program.
Our team of merchant specialists will design the best savings option for your business so you can accept all payments and eliminate all processing fees.
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