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Tap to Pay – Accept Payments Anywhere, Anytime
At Durango Merchant Services, we help online merchants to reduce or even eliminate credit card processing fees with innovative, compliant solutions. Dual pricing is a transparent pricing model that protects your profits by offering customers a choice between card payments and lower-cost cash-equivalent options. While some believe dual pricing is only for brick-and-mortar stores, it’s increasingly used in e-commerce, and our Durango Pay Gateway makes it a breeze for online businesses. In this blog, we’ll explore dual pricing, clarify what “paying cash” means for your customers, and show how the Durango Pay Gateway simplifies this strategy to boost your bottom line.
What is Dual Pricing?
Dual pricing is a merchant processing program that allows businesses to substantially lower or eliminate credit card processing costs. It works by offering two prices at checkout: a lower price for cash-equivalent payments (e.g., bank transfers) and a higher price for credit card payments, reflecting processing costs (up to 4% per card brand rules). Customers choose their payment method, benefiting from savings with cash-equivalents or the convenience of cards.
If you’ve seen a gas station sign with separate cash and credit prices, you’re familiar with dual pricing! This model is not just for physical stores—e-commerce businesses, from utility providers to niche retailers, are adopting dual pricing to offset high card fees. Historically, dual pricing was limited by outdated systems, but the Durango Pay Gateway overcomes these barriers with seamless integration for online platforms like Shopify or WooCommerce. This model is legal in all 50 states and ensures transparency by displaying pricing upfront.
What Does “Paying Cash” Mean for Online Customers?
In dual pricing, “paying cash” doesn’t mean handing over physical currency—it refers to using cash-equivalent payment methods that save merchants on processing fees, allowing you to offer a discounted price. For customers shopping on your website, these options include:
- Bank Transfers (ACH): Pay directly from your bank account by entering your account and routing numbers at checkout. Funds transfer in 1–3 days, with same-day options available. It’s secure, low-cost, and ideal for subscriptions or high-value purchases.
- Electronic Checks (eChecks): Like a digital check, you provide bank details, and the merchant withdraws funds electronically. It’s a cost-effective choice for one-time or recurring payments.
- P2P Payment Apps (e.g., Zelle, Venmo, PayPal): Use apps like Zelle for instant bank-to-bank transfers or Venmo/PayPal when linked to your bank account. At checkout, select the app, log in, and send payment securely—often with no fees for you or the merchant.
- Other Methods: Real-time bank transfers (e.g., RTP or FedNow) or prepaid debit cards linked to bank accounts offer fast, low-cost payments for select merchants.
These cash-equivalent methods are secure and convenient, letting you save money by choosing the discounted price while avoiding card processing fees. The Durango Pay Gateway makes it easy by guiding you through these options at checkout, with clear pricing and digital receipts showing your savings.
Key Features of Dual Pricing
Is There a Cap on Dual Pricing?
Yes. The percentage increase for card payments cannot exceed 4% and must not be higher than the merchant’s actual credit card processing cost, per card brand regulations.
How Does Dual Pricing Work?
All card types—credit, offline debit, and PIN debit—are priced at the same flat rate, passed to the cardholder. Merchants receive an offset flat rate to cover costs. Debit cards, including PIN debit, cannot be priced separately.
Is Dual Pricing Legal?
Dual pricing is legal in all 50 states, providing confidence for merchants nationwide.
Which Card Types Are Included in Dual Pricing?
The program applies to all card types except EBT, including credit, offline debit, and PIN debit.
Is Card Brand Registration Required for Dual Pricing?
No. Dual pricing requires no registration with card brands, simplifying setup.
How Do Merchants Disclose Pricing?
Transparency is critical:
- Advertise the card price (highest price), and no further disclosure is needed.
- Optionally display both card and cash prices, though only the card price is required.
- Avoid signage specifically for dual pricing to maintain compliance
The Durango Pay Gateway: Simplifying Dual Pricing for E-commerce
The Durango Pay Gateway makes dual pricing effortless for e-commerce businesses, countering the myth that it’s only for physical stores. It automatically adds a percentage (up to 4%) to card transactions, ensuring accurate pricing without manual effort. Key benefits include:
- Savings: Offset 100% of credit card processing fees, keeping more money to reinvest in your business.
- Transparency: Display cash and card prices on your website during checkout, so customers see options clearly.
- Clarity: Provide digital receipts showing the cash discount applied, building trust.
- Compliance: The gateway adheres to card brand rules, keeping your business protected.
- Seamless Integration: Works with our suite of products, integrating with your e-commerce platform or website for a smooth online checkout experience.
E-commerce merchants, from B2B suppliers to niche retailers, use dual pricing to save thousands annually, and the Durango Pay Gateway makes it possible by integrating with platforms like Shopify or custom websites.
Why Choose Dual Pricing with Durango Merchant Services?
Dual pricing, powered by the Durango Pay Gateway, delivers unmatched benefits for online merchants:
- Eliminate Processing Costs: Pass fees to cardholders, saving thousands annually.
- Stay Compliant: Dual pricing meets card brand regulations, reducing risks.
- Enhance Customer Trust: Transparent pricing and clear receipts empower customers to choose cash savings or card convenience.
- Simplify Operations: The Durango Pay Gateway automates pricing for online transactions, reducing errors and administrative tasks.
E-commerce merchants, from B2B suppliers to niche retailers, use dual pricing to save thousands annually, and the Durango Pay Gateway makes it possible by integrating with platforms like Shopify or custom websites.
Why Partner with Durango Merchant Services?
We’re your trusted partner in maximizing profitability. Our team provides:
- Customized Solutions: We tailor dual pricing to your online business, ensuring compliance with card brand rules.
- Effortless Setup: We integrate the Durango Pay Gateway with your e-commerce platform or website, ensuring compliant pricing displays for online transactions.
- Ongoing Support: From setup to optimization, we’re here to help you succeed.
Don’t let credit card fees erode your profits. With dual pricing and the Durango Pay Gateway, Durango Merchant Services helps e-commerce merchants lower costs, stay compliant, and keep customers happy. Whether you’re a niche retailer or a B2B supplier, dual pricing is a proven strategy to boost your bottom line. Contact us today to customize a dual pricing solution.
Transform your online payment strategy with Durango Merchant Services!
