As a family entertainment center (FEC) operator, you probably got into this business to focus on fun. You also know that every penny matters when it comes to running a business, which is probably why you are reading this right now. In this blog, we’ll cover what dual pricing is and how to stay compliant with dual pricing at your FEC.
What Is Dual Pricing?
Formerly known as Cash Discount, Dual pricing is when the technology solution at the point of sale offers the merchant a choice between the cash price and the credit price.
Dual pricing is legal in all 50 states.
What Is A Surcharge, And How Is Dual Pricing Different?
A surcharge is a line-item fee that is added on top of the normal purchase price when paying with a credit card. In essence, it allows you to offset some or all of your credit card processing fees by passing those charges on to your customer.
Unlike dual pricing, surcharging is not legal in all 50 states. The credit card brands also have their own rules around surcharging.
Surcharging also differs from dual pricing in two other important ways. First, dual pricing is communicated to customers as a discount from the regular price, whereas a surcharge is an added fee. While both pricing plans can rankle customers, surcharging, in particular, can come across as an unfair fee that might deter customers from doing business with you.
Second, dual pricing requires a more sophisticated configuration on your payment terminal or point-of-sale system. Rather than simply adding an extra fee, your payment device needs to be programmed to charge the full price by default and show the discounted price for cash-paying customers.
Benefits Of Dual Pricing
The biggest benefit to dual pricing (aside from saving money on processing fees) is having a payment partner who you trust that can do all the heavy lifting for you. Raising prices on your own and making sure you have the correct signage for customers can be a hassle. A qualified expert can save you a lot of time and headache by setting it up for you.
At FECFIN, we help you assess your current credit card rates and work with you to determine the pricing model that makes the most sense for your business. If dual pricing is right, we’ll help you choose the dual pricing rate, get the signage you need, and ensure your payment terminal or POS is set up correctly—so that it’s easy for you, clear for your customers, and compliant.
How To Stay Compliant With Dual Pricing:
What you need to do to stay compliant is:
- Post both cash and credit card prices (like you see at gas stations)
- Example: 100 credits for $20 cash / $20.70 credit
- Or post credit card prices
- Example: 100 credits for $20.70 credit
- Both options above require new signage to be posted. FECFIN gladly supplies its customers with as many decals as they need.
Whether you choose to do Dual Pricing or not, FECFIN will get you the most competitive effective rate in the industry for credit card processing.
Feel free to reach out to us with any questions you may have about credit card processing.