Dual pricing has gained momentum recently as a new pricing strategy, listing both card and cash prices for an item. This pricing strategy holds several advantages for businesses and consumers alike.
DUAL PRICING AND COST SAVINGS
A major benefit for merchants using a cash discount program is the reduction or elimination of card-processing fees. The money saved on processing fees can allow businesses to channel profits back into their operations. More money in your pocket is always a good thing.
IMPROVED USER EXPERIENCE
Dual pricing improves customer experience by reducing confusion and showing savings when they choose to pay with cash. With dual pricing, a store clearly shows a cash price and a card price, making it easy for a customer to see the total cost.The transparent display of both cash and card prices empowers customers to make informed choices, enhancing customer satisfaction.
GIVING CUSTOMERS MORE CHOICE
With dual pricing, customers choose between paying two different prices. Customers that pay with cash will pay a lower price – a “cash discount”. Those that choose to pay with a credit card will pay a slightly higher price to cover the cost of processing. Customers will appreciate having more payment options: Those who want to save money by paying in cash will have that ability, while customers who prefer to pay with a card will still be able to do so.
DUAL PRICING AND PRIORITY
With Dejavoo or Valor Paytech payment terminals, both of which integrate with the MX™ Gateway, merchants can offer customers the option of dual pricing. From maximizing revenue and profitability to enhancing customer targeting, it can be a beneficial offering for merchants.
ALTERNATIVE SOLUTION: MX™ ADVANTAGE FOR CASH DISCOUNT
As businesses navigate an increasingly complex and competitive landscape, embracing innovative pricing solutions will be key to driving growth and staying ahead of the curve. One of these solutions is MX™ Advantage for Cash Discount, an application that allows merchants to apply discounts when customers use cash, ACH, or check for payment. Cash Discount presents one price to the customer, and applies a discount when an applicable method of payment is used.
