Dual pricing is a pricing model that allows businesses to charge different prices for the same product or service, depending on the method of payment used. Specifically, it involves setting a “Regular Price” and then offering a discounted price for cash.
The reason for this pricing model is that credit card processing fees can be a significant expense for businesses, often ranging from 2% to 3% of the total transaction amount. By building in these fees into your “regular price” for customers who use electronic payment methods, businesses can offset these costs and increase their profits.
While some customers may balk at the idea of paying more for using a credit card, studies have shown that most are willing to accept the practice if it is clearly disclosed upfront. In fact, some customers even prefer to pay with cash in order to receive the lower price, which can save them money as well.
One of the key benefits of dual pricing is that it can help businesses save money on credit card processing fees with relatively no extra effort. This can make a big difference in industries with tight profit margins, such as restaurants, retail stores, and small businesses because you virtually eliminate the fees to accept credit/debit cards.
In addition to saving money, dual pricing can also improve business systems and efficiency if they are paired with the right point of sale systems.
At EZ Pay, we offer dual pricing as part of our point of sale systems, allowing businesses to automatically charge different prices for cash and “regular price”. By combining this feature with our other point of sale tools, such as inventory management, customer tracking, and sales reporting, and much more, businesses can streamline their operations and increase their profits.
In conclusion, dual pricing is a pricing model that can help businesses offset the cost of credit card processing fees and increase their profits. By charging different prices for cash and credit card payments, businesses can encourage more customers to pay with cash, improve their systems and efficiency, and save money on transaction fees all at the same time. To learn more about how dual pricing can benefit your business, contact EZ Pay for a free consultation.
To specifically discuss Point of Sales options and discover which of our 12+ systems will work best for you, visit us at EZ POS DEMO page.
