Every time a customer pulls out a premium rewards card such as a Delta Amex or Chase Sapphire Preferred, they earn airline miles, hotel points, or cash back. The bank does not fund those rewards.
The merchant funds them.
This is one of the most misunderstood realities in payment processing.
The more premium the rewards card, the higher the interchange cost to the business. A regulated debit card transaction may cost near 1%. A premium rewards credit card can exceed 3% for the exact same sale amount.
That difference comes directly out of your margin. While customers earn points toward travel and perks, many businesses absorb thousands of dollars per year in elevated processing costs without realizing how much premium card mix impacts their effective rate.
There is a compliant solution: DUAL PRICING
When structured correctly and in compliance with Visa and Mastercard guidelines, dual pricing allows a business to display both a cash price and a card price in a transparent and lawful manner.
The card price reflects the cost of electronic payment acceptance, including interchange and network fees.
This model has been successfully implemented across multiple industries:
• Restaurants and pizzerias
• Auto repair shops
• Convenience stores
• Retail stores and diners
• Driving ranges and specialty supply businesses
• E commerce brands and digital course providers
• Even antique and specialty shops
When properly disclosed and supported by the right POS and signage, compliant dual pricing can significantly reduce and, in many cases, eliminate the net burden of card processing fees.
You already deliver value through your product and service.
You should not also be financing customer reward programs.
If you would like an analysis of your current effective rate and a projection of how dual pricing could impact your bottom line, we will provide a complimentary assessment.
Protect your margins. Modernize your pricing. Keep more of what you earn.
Message us directly, Call us or visit our website to schedule a consultation.
