DUAL PRICING-CASH DISCOUNT – SURCHARGE
The Dual Pricing, Cash Discount and Surcharge programs can be implemented in all 50 states, they were created to help merchants save money and give their businesses an alternative to standard credit card processing fees.
How Our Zero Fee Processing System Works, it gives its customers a way to save thousands of dollars a year. We pass the cost of the credit card fee along to your customer.
If they do not want to pay the fee, they can always pay in cash. When you use our company for your payment processing needs, you will have an automatic advantage against your competition.
There are Multiple Fees You Will Not have pay once in this program, like : Batch fees, Statement Fees, and other miscellaneous / junk fees; We know how hard you work for your money and we think you should be able to keep it.
Batch Fees
When a processing company batches your transactions for you at the end of the day, they will normally charge you a batch fee for each bank you have had a transaction with that day. Banks charge a fee to the processing company and the processing company charges a fee to merchants. Merchants who do business with us will never have to pay these fees.
Monthly Fees
Some credit card processing companies will charge you a fee every month just for being a customer and for providing you a monthly statement. This is normally a flat fee, the price of which varies from company to company. This fee is usually around $10.00 to $20.00 a month.
Costs for Equipment
Most payment processing companies will require you to use their equipment, and our company is no exception. We have a unique cash discount system that works through our terminal.
How Are We Able to Offer Zero Processing Fees?
At this point, you may be wondering how we make our money. We charge fees like any other credit card processing company. We do not offer free credit card processing. However, the merchants do not pay these fees.
We use one of three different models to do this depending on the state in which our client is located. These programs are cash discount program, surcharge program, dual pricing. We are fully compliant with each of these programs in their respective states.
Dual Pricing
Dual pricing occurs when at the point of sale the customer is presented 2 prices, the lower amount is for cash and the higher amount is if the customer chooses to pay with a credit or debit card.
Cash Discount Program
Cash discounting is a method used by merchants to lessen or eliminate their credit card processing costs. Customers are given a small discount when they pay in cash. Your customers will have a positive impression of your business when you use this method as they will see a benefit right away.
Cash discount programs have been around for a while, many gas stations have been on a Cash Discount Program for many years. Businesses used to display different prices for cash and credit cards. Nowadays, most shops will just display one price and reduce it slightly at the register when people pay in cash. Normally the amount of the discount will be whatever the processing fee would be.
Surcharge Program
A surcharge program is when a small fee is added to a purchase that is paid for with a credit card but not on debit cards. Most people will not complain about a very small fee because they want the convenience of paying with a credit card. You will not have to raise your prices to make up for the costs of the fees you have to pay when you use this program.
The Surcharge & Cash Discount Program’s legality briefly explained
There are two federal court cases/ laws allow all businesses to offer a cash discount.
The Durbin Amendment is a provision of United States federal law, 15 U.S.C. § 1693o-2. It was passed as part of the Dodd-Frank financial reform legislation in 2010.
Ohio v. American Express Co., 585 U.S. ___ (2018), was a United States Supreme Court case regarding the nature of antitrust law in relation to two-sided markets. The case specifically involves policies set by some credit card banks that prevented merchants from steering customers to use cards from other issuers with lower transaction fees, forcing merchants to pay higher transaction fees to the banks. While Visa and MasterCard settled with the United States Department of Justice in 2010, American Express defended its practice by arguing that the anti-steering policies
benefited its cardholders, the higher transaction fees helping to maintain member services. While the Department of Justice and several states prevailed during a District Court trial in 2015 citing harm to the merchants, the Appeals Court reversed the District Court’s ruling in 2016 by ruling that the plaintiffs had not shown harm to both sides of the two-side market, a novel test in anti-trust law. This decision led to some of the states to appeal to the Supreme Court. The case was heard by the Court in February 2018.
The Court issued its decision on June 25, 2018, affirming the Appeals Court’s ruling that steering provisions do not violate antitrust laws. With this decision upheld.
FAQ
What is a Cash Discount?
A “cash discount” happens when a merchant decreases the price for cash purchases. The program does not discriminate against one card over another. Cash Discounts reward customers for paying by a particular means and/or for not using a particular means of payment. Cash discount programs have been available for years to many other merchants including higher education, government, gas stations and utility providers, but only recently have the federal regulations been changed to allow independent business owners to use the same programs.
Is a Cash Discount different than a Surcharge?
A “surcharge” occurs when a merchant increases the price for credit card purchases. A “cash discount” happens when a merchant decreases the price posted for their goods and services for alternative payment/purchases. No surcharges or fees are allowed on debit card transactions, specifically PIN-based debit. We also offer the surcharge program if that fits your business better.
How does it work once implemented at your business?
We use an app that you install on your Smart Terminal and you add the fee and it is automatically calculated at the time of the sale, the customer sees the cash price and the credit price on the screen. This small fee offsets your processing fees so you pay almost $0.00 for processing fees.
What business types can use this program?
Cash Discount is the ideal solution for a variety of service-based industries including retail, food and beverage, personal services, and professional services. Most businesses who use our program have an average ticket sale between $13-85 but any business can use the program!
How much money will your business save monthly ?
100% of the processing cost on the base amount of your ticket sales
What’s the equipment cost, do you need to buy it or lease it?
When using the Cash Discount program we will provide you with Free equipment, no need to purchase or lease anything, plus we will provide you with the best tech support and customer service, dedicated concierge service to your business
