Storage Software is moving quickly with these pricing models do you know the difference between Surcharge pricing & Dual pricing Cash discount? What does your current storage software offer? Here is a current breakdown of both pricing structures for payments, is your software or pos compliant with the card brands Visa,Mastercard etc?
Dual Pricing
Think of a fuel station that lists both a cash price and a card price. There is not one
regular price, there are two different prices listed, depending on which form of
payment is used.
Compliance Tip:
Dual Pricing literally means you have two different prices for each item. As you
think about the various ways you communicate your price to customers, start
thinking in terms of how you will communicate your "prices" to customers in a clear
way from the shopping experience to the final check out. Dual pricing is Compliant in all 50 states.
Dual Pricing is the only program to ensure compliance while using
to manage your self storage facility. Facilities can display cash and card pricing
through their sign up process as well as account for what payment method a customer
is using to generate the appropriate recurring invoices. If you are adding a recurring
fee on your customers invoice to offset the cost of processing, you are non compliant
with Visa's regulations.
Surcharge
Surcharging involves adding a line item fee to the receipt at the counter and this
program is heavily regulated by Visa, so be careful. You may not add a surcharge
greater than 3% and you may only add the surcharge to credit card transactions, NOT
debit or prepaid card transactions, even if those transactions are processed as credit.
Compliance Tip
In order to add a line item to the receipt, you must use a compliant surcharging platform
that is able to look up each card prior to authorization to determine if it is a credit card or a
debit card and then add the fee only to credit card transactions. Surcharge is not allowed in certain states.
- California
- Connecticut
- Maine
- Massachusetts [1]
-
Visa/Mastercard, as well as certain
states, still regulate how these programs
are implemented, and they will fine you if
you are not compliant. Implementing
these programs on your own is
NOT ADVISED.
For violations of the card brand
rules, businesses can be fined
$1,000 per occurrence, increasing
to $5,000, $10,000, and $25,000
per occurrence for
repeated violations.
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Eric Sandie
CCStorage
Austin TX
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