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Offer Price Flexibility, Boost Your Bottom Line

Dual pricing puts the power of choice in your customers’ hands. With Tonic, give them the option of a lower cash price while reducing your processing fees. It’s a win-win!

How Dual Pricing Works (and How Tonic Makes it Easy)

Dual pricing is simple in concept, and Tonic makes it simple in practice.  Here’s the breakdown:

  • Transparent Pricing: You display two prices for each item: a cash price and a non-cash price. This gives customers the power to choose.
  • Reduced Fees: When a customer pays with cash, you avoid the higher fees associated with credit and debit card processing.
  • Tonic Integration: Our POS software is designed to support dual pricing seamlessly. You can easily set the price differential and ensure clear receipts for both payment types.

Example:

      • Menu Item: Cheeseburger
      • Cash Price: $10
      • Non-Cash Price: $10.30

This small difference adds up over time! By encouraging even a portion of your customers to pay cash, you can significantly reduce your overall processing costs.

Benefits for Merchants

Dual pricing isn’t just about charging differently – it’s about transforming your business. Here’s what you can expect:

  • Save Big on Processing Fees: Reduce your reliance on costly credit card transactions and see those savings add up fast. Many merchants save thousands per year!
  • Boost Your Cash Flow: Get paid in cash more often, giving you the working capital you need to cover daily expenses and invest in growth.
  • Gain a Competitive Edge: Attract price-savvy customers with the option of a lower cash price, while still protecting your margins.
  • Pricing Flexibility: Easily adjust your pricing in response to rising costs or market shifts, without confusing customers.

Benefits for Customers

Dual pricing isn’t just good for businesses, it benefits your customers too! Here’s why:

  • The Power of Choice: Dual pricing puts you in control of how you pay. Want the lowest possible price? Choose cash!
  • Potential Savings: Even a small price difference can add up over time, especially for frequent customers.
  • Supporting Local Business: When you choose cash, you’re helping the business save on fees, which they can reinvest in better service or keeping prices competitive overall.
  • Transparency: Dual pricing eliminates hidden fees or surprises. You know exactly what you’ll pay before you even order.

Legalities and Compliance: Understanding the Rules

Dual pricing offers a compliant way to offset credit card processing fees, while similar models face increasing restrictions. Here’s the breakdown:

  • Dual Pricing:  You offer two prices: a lower cash price and a higher non-cash price. The non-cash price is the “base price”. This is currently the most reliable way to implement this type of pricing model while ensuring compliance.
  • Cash Discount: You set a single price (the non-cash price) and offer a discount for cash payments. While technically legal, card brands discourage this model and may impose additional fees.
  • Non-Cash Adjustment: You set a single price (the cash price) and add a fee for non-cash transactions.  This is considered a surcharge by card brands and is subject to strict regulations, often making it impractical or illegal.

Why Compliance Matters

Card brands (Visa, Mastercard, etc.) actively enforce rules against unauthorized surcharges.  Using non-compliant pricing models can result in fines, penalties, or even the loss of your ability to process card payments.

Tonic Helps You Stay Compliant

Our POS is designed with dual pricing compliance in mind.  We offer:

  • Clear price display options at checkout
  • Customizable receipts that meet legal requirements
  • Ongoing updates to ensure you’re always following the latest regulations

How Dual Pricing Works in Tonic POS

Implementing dual pricing with Tonic is simple and streamlined:

  • Easy Setup: Enter both the cash and non-cash price for each menu item directly within the Tonic BOH. We’ll guide you through tax setup too!
  • Customer Clarity: Tonic automatically shows both prices at checkout, giving customers a transparent choice.
  • Seamless Transactions: Whether the customer pays with cash or card, the transaction process is just as fast and easy as before.
  • Compliant Receipts: Receipts clearly show the pricing breakdown and any applicable taxes.
  • Ongoing Support: We provide training materials and are always here to answer your questions.

Getting Started with Dual Pricing

See your potential savings! Request a demo of Tonic’s dual pricing solution today.