What Is Dual Pricing? 

Dual Pricing is Arryved’s solution to help you recover card processing costs, maximize revenue, and keep your guests happy at the same time! With Dual Pricing, prices depend on the payment method chosen, cash or non-cash. For your guests paying with plastic, they’ll pay the Standard Prices for the items ordered. When guests pay with cash, they’re offered lesser Cash Prices. This article gives you an overview of Dual Pricing with Arryved. 

If you’d like to learn more about Dual Pricing, click here to schedule a call with one of our team members.

Benefits

• Dual Pricing helps recover your out-of-pocket processing fees.

• With Dual Pricing, on average, you can expect to save an additional $13,000 - 20,000 a year, for every $50,000 of card processing you do.

• In all 50 States, Dual Pricing can be applied to both Credit and Debit card transactions. 

• Unlike a general price increase, guests have a choice (pay less with cash or a bit more for non-cash purchases).

• Dual Pricing can be omitted or adjusted for specific Inventory Items if you choose. 

• This feature is easy to implement into your POS system and you have the option to back out at any time. 

• The best news is, Dual Pricing is NOT surcharging! But has even more benefits!

• Surcharging isn’t allowed in all 50 states.

• Surcharging only applies to Credit Card transactions, missing out on the roughly 50% of card transactions that are Debit.

Prerequisites 

• Your Inventory (menu items) must be added to your Arryved Portal prior to onboarding with the Arryved Dual Pricing program. 
  

• Dual Pricing is not supported on POS devices with Android 8 or lower.
  

• Arryved Service must be updated to version 1.24 or higher on all POS devices. 

Limitations

• Dual Pricing is currently only available for tabs paid out through Arryved Service. If a guest wants to pay cash for their OpenTab bill, they'll need to close out with a staff member in Arryved Service.

How It Works

TSYS Processing

The Arryved processing structure you’re used to is known as Interchange +. This pricing structure charges a variable rate for processing based on the type of card and the type of transaction. Interchange + includes both a percent fee and a per transaction fee. 

The Dual Pricing program eliminates the fluctuation of the per transaction fees and offers a flat rate of 3.99%. The flat rate includes your interchange rate, association fees, and per-transaction fees all wrapped into one. 

• This doesn’t include your standard bank fees, the Arryved platform fee, or your other monthly TSYS fees (non-processing fees such as PCI compliance). 

• With the Dual Pricing flat rate, the processing fees are deducted from each of your daily deposits, rather than your monthly deposits. 

• You must sign a TSYS Merchant Change Form and agree to the 3.99% flat rate to participate in the Dual Pricing program. 
  

Creating Your Cash and Non-Cash Prices

Next is a change to your inventory pricing. This is how you’ll recover your processing costs and increase your revenue. 

With Dual Pricing, your current prices become your new Cash Prices and your new Standard Prices will be at least 4%-5% above that. Here’s a calculation comparison of the new Standard Prices and Cash Prices with either a 4% or 5% difference: 

• Notice that a 5% difference in cash and non-cash prices covers the processing costs collected on the tax and tips. 

• A 4% difference in prices does cover a portion of the fees, but costs collected from tax and tips aren’t fully covered. 
  

Recovering Costs

The combination of your new 3.99% flat processing rate, and your new Standard and Cash Prices (hence Dual Pricing) allows you to recover your processing costs by increasing your revenue. Take a peek at your possible savings below. 

*Your actual savings depend on your sales, tax, tip, and card mix. Arryved can help estimate your savings based on your transaction history. Just ask when you inquire about the Dual Pricing program. 

Calculations

Once Dual Pricing is enabled for Arryved Service, here’s how it works with the system:

• The Standard and Cash Prices are calculated before tax and tip. 

• Gift card and written check payments use Standard Prices (not Cash Prices)

• If a Partial Payment is made, the tab’s overall total is based on the first payment type selected. So, if cash is paid first, the other Partial Payments receive the Cash Price regardless of their payment type. 

• Items with an open amount (items with the Giftcard or Open Item Tags) can’t use Dual Pricing, the amount entered upon sale is the exact price. 

• Deposit items and fixed gift cards ($25, $50, $100 gift cards, etc.) will honor Dual Pricing, but many customers have chosen to adjust the pricing of those items so that Cash and Standard Prices are the same. If you want to keep Dual Pricing for those types of items, that’s up to you. 

• Upcharges on Modifiers have a fixed price, Dual Pricing doesn’t apply.

• Voiding a cash or card payment re-opens the tab with the non-cash total. From there if you repay the tab with cash, it'll adjust to cash prices.

• Returns and exchanges will honor the price that was paid, whether that was the Standard or Cash Price.

• Dual Pricing can apply to items with added or inclusive tax. 

Tax

Dual Pricing can apply to all of your Inventory Items whether they have add-on or inclusive tax. Take a look at the chart below to see how the calculations vary between the two tax types. In this example, the tax rate is 8% for both Add-on and Inclusive. 

Dual Pricing In Arryved Service

Payment Options Screen

With Dual Pricing in Arryved Service, when the Cash button is selected from the Payment Options Screen, the Arryved POS system knows to charge the Cash Total (with Cash Prices)l. If any other method of payment is selected, the POS charges the Non-cash Total (with Standard Prices). 

Once your Dual Pricing is launched, the Payment Options Screen will look a little different. Instead of the usual handful of cash buttons ($5, $10, $20, Exact $), there’s just the one Cash button. The other buttons were moved to the next screen (the Cash Payment screen), so they are still accessible. 

Digital Signature Screen

The Digital Signature screen remains unchanged. If the guest pays by credit, debit, or gift card, they’ll see the Non-cash Total (Standard Prices) of the bill when signing and leaving a tip. 

Printed Bill 

When your guests are ready to pay the bill, the printed bill is your friend! It shows the Non-cash Total and the Cash Total. This allows the guest to make their decision on which method of payment to use as they are reviewing the bill. 

If you’re using Dual Pricing, it’s encouraged to print the initial bill for guests to review even if you collect signatures digitally. 

Reporting

When your Dual Pricing is launched, sales numbers in all Arryved reports will include both Standard and Cash Prices. 

Most reports will have Standard and Cash Price sales totaled together, except the reports mentioned below. These reports have new Standard and Cash Price columns called out separately.  

Reporting → Sales 

• Purchase Items

• Item Sales Summary (By Size)

Reporting → Inventory 

• Unit Size Report

• Inventory Item List 

Reporting → Accounting

• Consolidated Sales Report

Next

Sold on Dual Pricing? To get started, please click here and schedule a call with one of our team members.