The Dual Pricing Program helps boost your profits by reducing the fees you pay on credit/debit card transactions. Here's how it works: You display two prices - the standard price includes credit card processing fees. The second discounted price applies when customers pay with cash or cash-equivalents like ACH/wire transfers, allowing you to bypass those bank fees entirely. By incentivizing customers to choose the cash/cash-equivalent option, you get to keep more of that revenue instead of paying fees to banks on each card sale. This simple approach increases your profit margins while still providing pricing transparency. It's a win-win for both merchants and cash-paying customers.
Those seemingly small percentages add up, and fast. With average fees of 2.5%-3.5%, on sales of $100,000/month, you're parting with a staggering $3,000 or more. Annually? That's upwards of $36,000! With BoxFi, you can reclaim a substantial chunk of those lost profits.
Absolutely. We pride ourselves on compatibility. While BoxFi seamlessly integrates with most major processing systems, even if yours isn't immediately compatible, our team offers free consultations to ensure a smooth transition. We're here to make this easy.
We believe in our solution, but we also value flexibility for our partners. While we recommend a 90-day adoption period to fully experience the benefits, if you wish to switch or stop, a simple 30-day written notice is all it takes. It's risk-free exploration.
Clear communication is key. We offer extensive training to ensure your team feels confident explaining the program. In essence, you'll convey: 'For credit card payments, a small service fee applies. Prefer not to pay it? No worries, cash or equivalent methods are fee-free.' Remember, you always have the choice to waive the fee for special customers.
Even if things seem fine currently, traditional payment processing systems often have hidden fees that quietly cut into your profits over time. Our Dual Pricing Program provides a transparent, cost-saving alternative. By allowing customers to pay a discounted cash price and avoid credit card fees, you can substantially increase profit margins. If maximizing revenues without sacrificing customer satisfaction is your goal, our Dual Pricing solution accomplishes just that - giving you and your cash-paying customers a win-win.
Surcharging involves adding an extra fee on top of the normal purchase price when customers pay with a credit card. It is not universally legal, as some states prohibit surcharging or limit the maximum surcharge rate. Credit card brands like Visa also have their own restrictive rules around surcharging practices. This added fee can come across as punitive to customers.
In contrast, the Dual Pricing Program takes the opposite approach - offering a discounted price to customers who pay with cash or cash equivalents, rather than adding a surcharge fee for credit cards. Dual pricing is presented as an incentive discount (e.g. $100 cash price vs $103.75 credit price), not an extra fee. It requires sophisticated POS configuration but is legally permissible in all 50 states, unlike surcharging's patchwork of regulations. For businesses where cash transactions are prevalent, dual pricing provides value by incentivizing and rewarding that behavior.
When considering either approach, it's crucial to ensure full compliance with all applicable state laws and card brand policies. Consulting payment professionals is highly recommended before implementation.
The origins of the Dual Pricing Program can be traced back to the Dodd-Frank Wall Street Reform and Consumer Protection Act. This pivotal legislation allowed merchants the freedom to offer discounts for certain payment methods. BoxFi's Dual Pricing Program is a direct response to this opportunity, providing merchants a legal and efficient way to significantly reduce their credit card processing fees.