How GhostPay Slashes Transaction Fees by 50-80% with Compliant Surcharging and Dual Pricing

In the competitive world of eCommerce and brick-and-mortar businesses, every percentage point matters when it comes to processing fees. For many merchants, transaction fees are a significant expense that directly impacts their profitability. But what if there was a way to reduce these fees by 50-70% while staying fully compliant with state and federal regulations? GhostPay Choice offers a solution through compliant surcharging and dual pricing strategies. In this article, we’ll explain how GhostPay Choice works and how it can help your business save significantly on transaction costs.

Understanding the Challenge: Transaction Fees

Whenever a customer makes a purchase with a credit card, the merchant pays a transaction fee to the card issuer and payment processor. These fees, known as interchange fees, typically range from 1.5% to 3.5% of the transaction amount. For high-volume businesses, these costs can quickly add up, cutting into profit margins and making it difficult to compete in price-sensitive markets.

Many merchants feel like they have little choice but to absorb these fees or pass them on to customers indirectly by increasing prices. However, both of these options can hurt sales and customer satisfaction. This is where GhostPay Choice comes in, providing a compliant and effective way to reduce or eliminate these fees through surcharging and dual pricing.

What is Surcharging?

Surcharging is a practice where a merchant adds a fee to a customer's bill when they choose to pay with a credit card. This fee is meant to offset the costs associated with processing the credit card transaction. While surcharging is legal in most states, there are strict regulations governing how and when it can be applied to ensure transparency and fairness for consumers.

What is Dual Pricing?

Dual Pricing is another strategy that allows merchants to offer two different prices: one for customers who pay with cash or debit cards and a higher price for those who use credit cards. This system is fully compliant with card network rules and state laws, providing a transparent way to offer customers a choice in how they pay and potentially save money.

How GhostPay Choice Works

GhostPay Choice is designed to help merchants leverage surcharging and dual pricing in a fully compliant manner. Here’s how it works:

1. Compliance First

GhostPay Choice ensures that all surcharging and dual pricing practices are fully compliant with state and federal laws, as well as the rules set by major card networks like Visa, Mastercard, American Express, and Discover. This includes clear disclosure requirements, fee caps, and ensuring that surcharging is applied only to credit card transactions (and not debit cards).

2. Transparent Pricing

With GhostPay Choice, merchants have the ability to present clear and transparent pricing to their customers. Customers are informed upfront about any additional fees that may apply if they choose to pay with a credit card, allowing them to make an informed decision. For example, a customer might see a price of $100 for a product if they pay with cash or debit and $103.50 if they choose to pay with a credit card (reflecting a 3.5% surcharge).

3. Automated Fee Calculation

GhostPay Choice integrates seamlessly with your existing payment processing setup, automatically calculating and applying surcharges where applicable. This eliminates the need for manual calculations and ensures that all fees are applied correctly and compliantly. The system is configured to adjust to different state regulations and card network rules, keeping you in compliance effortlessly.

4. Dual Pricing Display Options

GhostPay Choice provides merchants with dual pricing display options on a variety of terminals, allowing them to clearly show both the cash/debit and credit card prices on their websites, invoices, and physical store displays. This transparency builds trust with customers, who appreciate knowing their payment options upfront and potentially saving money by choosing a lower-cost payment method.

5. Customizable Setup

GhostPay Choice is designed to be flexible and customizable, adapting to the unique needs of different businesses. Whether you operate a small eCommerce store or a large brick-and-mortar operation, or a services based business, GhostPay Choice can be tailored to fit your specific requirements. The setup process is quick and easy, with ongoing support to ensure you’re maximizing your savings.

How GhostPay Choice Can Eliminate Your Transaction Fees

By implementing a compliant surcharging or dual pricing strategy, GhostPay Choice can help you significantly reduce or even eliminate the interchange fees associated with credit card transactions. Here’s how these savings add up:

1. Surcharging Passes Costs to Customers: Instead of absorbing the full cost of credit card processing fees, surcharging allows you to pass these fees on to customers who choose to pay with credit cards. This can reduce your overall processing costs by up to 3% per transaction.

2. Encourages Lower-Cost Payment Methods: Dual pricing encourages customers to choose lower-cost payment methods, like cash or debit cards, by offering a discount or lower price. Over time, this shift in customer behavior can lead to a substantial reduction in your total processing fees.

3. Compliance Ensures No Surprises or Penalties: By staying fully compliant with all state and federal regulations, GhostPay Choice helps you avoid potential penalties, fines, or disputes that could arise from improper surcharging or dual pricing practices.

4. Automated Fee Management Reduces Errors: GhostPay Choice automates the calculation and application of fees, reducing the risk of errors that could lead to customer dissatisfaction or chargebacks.

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Real-World Example: How GhostPay Choice Works for a Merchant

Imagine you run an online store that sells home goods. You typically process $50,000 in credit card transactions each month, with an average processing fee of 3%. This means you’re currently paying $1,500 per month in transaction fees.

By implementing GhostPay Choice’s compliant surcharging strategy, you start passing the 3% fee onto customers who choose to pay with a credit card. Over time, some customers may choose to switch to lower-cost payment methods like debit cards or cash, but for those who continue to use credit cards, the surcharge offsets your processing costs.

If you retain even half of the credit card transactions (and the other half shifts to debit or cash), you’ve effectively reduced your monthly processing costs by 50%—a savings of $750 per month, or $9,000 per year. In some cases, merchants have seen savings as high as 80%, depending on their transaction volume and customer payment preferences.

Reach Out to GhostPay for a Free Consultation

Reducing your transaction fees by 50-70% can significantly impact your bottom line and help your business stay competitive. GhostPay Choice makes it easy to implement compliant surcharging and dual pricing strategies that benefit both you and your customers.

Ready to learn more about how GhostPay Choice can help your business save on transaction fees? Contact us today for a free consultation and discover the difference GhostPay can make for your business!