Surcharge, Cash Discount, or Dual Pricing – Which Fits Your Business?

For many small businesses, balancing customer convenience with operating costs can feel like a tightrope walk, especially when it comes to accepting credit cards.

There's numerous merchant processing programs available, but the details aren’t always clear.

In this post, let’s cover Surcharge, Cash Discount, and Dual Pricing and how these strategies can help save on fees.

Let’s begin.

• Surcharges allow you to recover credit card processing fees by adding a small percentage to card transactions. While effective, they come with strict regulations and are prohibited in some states.
• Cash Discounts offer an incentive for cash payments by discounting prices at checkout, bypassing surcharge restrictions and simplifying compliance.
• Dual Pricing, a variation of cash discounts, involves displaying two prices upfront - one for cash and another for card payments. This approach provides transparency and is legal across the board.

Each method has pros and cons, and choosing the right one depends on your state laws (always consult with your legal), customer preferences, and business model.

Would your customers embrace a surcharge or appreciate a discount for cash? Could dual pricing offer a clearer choice?

Read full post at https://ehopper.com/articles/credit-card-surcharges-vs-cash-discounts/

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