Dual Pricing: A Compliant Way to Offset Credit Card Fees

Dual Pricing: A Compliant Way to Offset Credit Card Fees

Overview

Visa has recently intensified enforcement of its policies, deploying secret shoppers to monitor businesses applying service fees, surcharges, or requiring minimum card spends. Businesses found in violation are facing fines of $1,000 and potential account termination. To help you stay compliant while still managing processing costs, Franpos has introduced a Visa-compliant solution: Dual Pricing.

What is Dual Pricing?

Dual Pricing is a method that allows businesses to adjust pricing to accommodate credit card processing fees while remaining fully compliant with Visa regulations. Instead of adding surcharges or requiring a minimum spend, businesses adjust product and service prices while offering a discount for cash payments.

How Does It Work?

  1. Price Adjustment: Businesses export their product and service pricing and increase them by the percentage needed to cover credit card fees.
  2. Automatic Cash Discount: When a customer pays with cash, Franpos automatically applies a discount coupon equivalent to the price adjustment, ensuring they receive the original price before the markup.

Why Use Dual Pricing?

  • Compliance with Visa & Payment Network Policies – Avoid fines and account termination.
  • Seamless Implementation – Franpos automates the process, making it easy to manage.
  • Cost Recovery – Businesses can recover credit card processing fees without violating payment regulations.
  • Customer Transparency – Prices are adjusted upfront, and customers receive a clear discount when paying with cash.

How to Implement Dual Pricing in Franpos

  1. Export Product and Service List – Download your current pricing data from Franpos.
  2. Adjust Pricing – Increase product and service prices by the desired percentage to cover transaction costs.
  3. Contact Franpos Support – Once you have adjusted your pricing, you must reach out to Franpos to transition from the current service fee model to Dual Pricing.
  4. Enable Dual Pricing in Franpos – Franpos will assist in setting up automatic discounts for cash payments.
  5. Test & Deploy – Review your setup and ensure discounts apply correctly at checkout.

Need Assistance?

If you need help setting up Dual Pricing, our support team is here to assist. Contact us via support@franpos.com or call us at 408-898-3217.

By adopting Dual Pricing, you can stay compliant, recover costs, and provide a transparent payment experience for your customers.

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