Dual Pricing Model
Imagine a customer is at your concert, and they want to buy a T-shirt from the merch stand and you being a savy business owner don’t want to pay any pesky credit card fees. So you utilze Adapt’s quirky Dual Pricing strategy and have two prices for all your merch.
1st Price Option: (Cash Price) The customer can pull out some crumpled bills from their pocket, they get the T-shirt for $20. It’s simple, straightforward, and as the band’s manager/owner you’re happy because you don’t have to pay any extra fees to the bank and get to keep all the cold hard cash for yourself. (well that is except what your Uncle Sam claims for himself)
2nd Price Option: (Card Price) If your fanatical fan forgot to hit the ATM or spent all their cash at the concession stand, the customer has the option to pay with their card and the price suddenly jumps to $22. Why? Because the savy band manager you are doesn’t want to deal with the credit card company and the fees they charge to process the payment. You get to pass that extra cost onto your customer for the convenience of swiping and not having cash on hand.
Advantages of Dual Pricing
Cost Savings
By encouraging cash payments, businesses can save on credit card processing fees, leading to significant cost reductions over time, increasing your bottom line.
Customer Choice
Dual pricing empowers customers to select their preferred payment method, whether they value savings or convenience.
Increased Transparency
This pricing model fosters transparency, as customers are clearly informed about the costs associated with different payment methods.
Enhanced Customer Satisfaction
Offering dual pricing can improve customer satisfaction by providing them with options and control over their payment experience.
How Dual Pricing Works
Cash Price
Customers pay a lower price when using cash, as it eliminates the need for processing fees associated with card payments.
Card Price
When customers choose to pay with a card, a small fee is added to cover the credit card processing costs, ensuring businesses are not burdened by these fees.
Customer Choice
By offering both cash and card prices, businesses provide transparency and allow customers to choose the payment method that best suits their needs.
Common Questions About Dual Pricing
Find answers to the most frequently asked questions about dual pricing and how it works with our payment processing services.
What is dual pricing?
Dual pricing is a strategy where businesses offer two different prices for a product or service depending on the payment method used—cash or card.
How does dual pricing benefit my business?
Dual pricing can help reduce processing fees by encouraging customers to pay with cash, thus saving your business money.
Is dual pricing legal?
Yes, dual pricing is legal in most states. However, it’s important to clearly communicate the pricing differences to your customers.
Dual Pricing A Game Changer For Your Business
Ready to save on transaction fees? Reach out to Adapt Merchant Services to learn how dual pricing can benefit your business. Our team is here to provide all the information you need to get started. Don’t miss out on this opportunity to optimize your payment processing costs.