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?
- Price Adjustment: Businesses export their product and service pricing and increase them by the percentage needed to cover credit card fees.
- 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
- Export Product and Service List – Download your current pricing data from Franpos.
- Adjust Pricing – Increase product and service prices by the desired percentage to cover transaction costs.
- 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.
- Enable Dual Pricing in Franpos – Franpos will assist in setting up automatic discounts for cash payments.
- 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.
Related Articles
Understanding Credit Card Processing Fees and Franpos’s Transparent Pricing
At Franpos, we believe in being upfront about costs to help you understand the fees associated with processing credit card transactions. By demystifying these charges, we aim to empower your business to make informed decisions while maintaining ...
Understanding Credit Card Processing Rates: How It Works with Franpos
When running a business, accepting credit card payments is essential, but understanding how credit card processing rates work can be complex. At Franpos, we strive to make this as transparent as possible by offering competitive pricing based on the ...
Credit Card Fraud Protection Measures
Fraud Protection Measures To safeguard our customers from fraudulent activity, we have implemented multiple layers of protection on our eCommerce checkout, combined with Adyen’s advanced fraud prevention technologies. CAPTCHA controls on checkout ...
Store Credit
Store Credit Feature Overview - The Store Credit feature allows businesses to issue and manage credit balances for customers directly within the POS system. Instead of providing cash refunds or vouchers, Store Employee using the POS can credit the ...
Credit card tokenization notice
There are 3 way a card can be attached to a customer profile. 1) The customer profile is selected during checkout, and the customer pays with a card. 2) Using the add card on file feature under the customer profile. 3) The customer can add a card by ...