Every business owner has expenses they simply can’t avoid: Rent, payroll, utilities, insurance, and taxes. But what if one of your largest monthly expenses didn’t have to come out of your pocket?
Every day, businesses across the country are taking control of their credit card processing costs through compliant pricing programs that can dramatically reduce, or even eliminate their processing expense. Chances are you’ve already seen it at your favorite restaurant, local auto shop, boutique, or coffee shop.
The question isn’t whether you can do it. The question is whether you’re doing it the right way.
Imagine what you could do if your business kept an extra $500! May even a $1,000? Or several thousand dollars every month by saving on credit card processing fees!
That money could help you:
- Hire another employee.
- Invest in new equipment.
- Remodel your storefront.
- Launch a marketing campaign.
- Expand your inventory.
- Build a financial cushion for the unexpected.
- Or simply improve your bottom line.
Every dollar you save on processing expenses is another dollar you can invest in growing your business.
One Size Doesn’t Fit Every Business
Many merchants hear the phrase “passing the fee” and assume there’s only one way to do it. In reality, there are three different compliant pricing strategies, each designed for different types of businesses and customer experiences. Let’s break them down below.
- Cash Discounting is a pricing model in which the advertised price reflects the card price for all products and services. At the point of sale, a discount is applied when a customer elects to pay with cash or a cash-equivalent payment method. This structure ensures that card-paying customers are not assessed an additional fee at checkout. Under this program, merchants may offset processing costs by applying a discount of up to 4%, subject to applicable card-brand rules and state regulations.
- Dual Pricing is a pricing model in which both a card price and a cash price are clearly disclosed for products and services, allowing customers to choose their preferred payment method prior to completing a transaction. The price differential reflects the cost of card acceptance and must be clearly and conspicuously disclosed. Under this program, merchants may offset processing costs by up to 4%, provided all disclosure, signage, and network requirements are met.
- Surcharging is a regulated program that permits merchants to apply a surcharge to eligible credit card transactions only. Debit cards and prepaid cards must be treated as cash-equivalent and may not be surcharged — you would be responsible for all processing fees related to debit cards and pre-paid cards. Participation in this program requires prior registration with the applicable card brands, adherence to strict disclosure and signage requirements, and compliance with state and local laws. Under current card-brand rules, surcharges are capped at 3% of the credit card transaction amount.
Compliance Matters
This isn’t as simple as printing a sign that says “3% Fee for Credit Cards.” Each pricing model has its own rules, signage requirements, receipt disclosures, and card-brand regulations. Choosing the wrong approach—or implementing it incorrectly—can expose your business to unnecessary risk.
That’s why working with an experienced payment partner matters. At Gratis Payments, we don’t believe in one-size-fits-all solutions. We take the time to understand your business and recommend the pricing strategy that best fits your industry, your customers, and your goals.
Thousands of businesses have already made the switch. Isn’t it time to find out how much your business could save? Contact Gratis Payments today for a complimentary savings analysis. We’ll show you how much you’re currently spending, explain your options, and help you determine whether a compliant pricing program is right for your business.
Email us today at info@gratispayments.com or call us at 855-464-7284 and we’ll get you started!