How to Avoid High Payment Processing Fees using CLEARswipe's Dual Pricing System with Co-Founder, Jeremy Russo (GoClearSwipe.com)
💰 Navigating Payment Processing Fees with CLEARswipe with Co-Founder, Jeremy Russo
ClearSwipe, a company co-founded by Jeremy Russo, that helps businesses reduce or eliminate credit card processing fees through a strategy called dual pricing.
Jeremy Russo explains that these fees, often the third-highest cost for businesses, can be avoided by offering customers two distinct prices: a lower "cash" price and a slightly higher "credit card" price that includes the processing fee.
This discussion clarifies the nature of interchange fees, how different businesses (high-risk vs. low-risk) face varying rates, and the distinction between dual pricing (transparently displaying two options) and surcharging (adding a fee at the end of the transaction, which isn't compliant in all states).
CLEARSwipe aims to integrate seamlessly with existing accounting systems like QuickBooks and is designed to be a compliant solution for businesses of any size, offering next-day funding and month-to-month contracts.
FAQs on CLEARSwipe: Eliminating Processing Fees with Dual Pricing
What are credit card processing fees and why do they exist?
Credit card processing fees are charges incurred by businesses when they accept credit or debit card payments. These fees are primarily made up of "interchange" fees, which are charged by card networks like Visa, Mastercard, American Express, and Discover. These fees cover the cost of owning and using the card, as well as the processing of transactions. The exact percentage of these fees can vary based on several factors, including the type of business (e.g., high-risk versus low-risk, where high-risk businesses like tow truck services might incur higher fees due to potential chargebacks), the volume of transactions, and the specific type of card used (e.g., an American Express Platinum card with rewards will cost a business more to process than a basic debit card). Businesses ultimately bear these costs, which in turn fund the rewards and benefits consumers receive from their credit cards.
How do traditional payment processors like PayPal and Stripe compare to Clear Swipe in terms of fees?
Traditional payment processors like PayPal, Stripe, and GoDaddy are widely known and trusted, making them convenient choices for many businesses, especially those just starting out. However, they typically charge higher processing fees, often ranging from 2.5% to 3.5% plus an additional 20 or 30 cents per transaction. While convenient, these fees can accumulate significantly, impacting a business's profitability, regardless of the average transaction size. Clear Swipe, on the other hand, focuses on eliminating these fees for the business by offering a "dual pricing" model, which passes the processing fee onto the customer who chooses to pay with a card. This allows businesses to retain 100% of their advertised price.
What is dual pricing, and how does it benefit businesses and consumers?
Dual pricing is a transparent payment model where a business displays two prices for a product or service: a slightly higher price for credit card payments and a lower price for cash payments (which includes physical cash, Zelle, Venmo, Cash App, etc.). For example, if a business wants to net $100, they might display a credit card price of $103 and a cash price of $100. This model ensures the business always nets their desired amount, as the credit card processing fee is covered by the customer who chooses that payment method. Consumers benefit by having the option to avoid the fee by paying with cash, or they can choose to pay the higher price with a card to earn rewards or for convenience. Dual pricing is compliant in all US states and internationally, making it a widely applicable solution for businesses of all types and sizes.
How does CLEARSwipe integrate with existing business systems like QuickBooks?
CLEARSwipe aims to minimize disruption for businesses by integrating seamlessly with existing systems where possible. For instance, CLEARSwipe has a platform that directly integrates with QuickBooks. Since QuickBooks doesn't natively support dual pricing, CLEARSwipe's system intercepts the invoice as it's being sent from QuickBooks, automatically calculates and applies the dual pricing, and then sends the invoice to the customer with both payment options displayed. This means businesses don't have to change their accounting or invoicing platforms. For other systems, particularly those with closed APIs that prioritize their own merchant processing, CLEARSwipe may offer workarounds, such as connecting their invoicing platform and then importing data to ensure businesses can maintain their primary CRM or bookkeeping system. The integration approach varies case-by-case, depending on the business's specific platforms, equipment, and payment acceptance methods.
Is dual pricing compliant everywhere? What about surcharging?
Yes, dual pricing is compliant in all states across the U.S. and can be implemented internationally in countries like Canada and Europe. This model is generally accepted because it transparently displays two prices and gives customers a choice in how they pay, allowing them to opt-out of paying the processing fee if they choose cash.
Surcharging, however, is different and not compliant in all states. Surcharging involves adding an extra percentage (e.g., 3%) to the total bill only when a credit card is used, often without explicitly offering a cash alternative at the point of payment. This can sometimes leave a "bad taste" for consumers who only realize the extra charge after the transaction is complete and they receive their receipt. Additionally, businesses cannot surcharge on debit card transactions, only on credit cards. Due to its less transparent nature and legal restrictions in certain areas, dual pricing is generally preferred for its compliance and clear communication with customers.
How can a business get started with CLEARSwipe?
Businesses interested in Clear Swipe begin with a "discovery call" to determine if it's a good fit. During this call, Clear Swipe assesses the business's current payment processing methods, fees, and existing systems. Based on this, they propose the best platform solution. Most invoicing platforms offered by CLEARSwipe are inexpensive, typically costing $50 to $70 per month, which includes onboarding, integration, and 24/7 customer service. This fee also includes next-day funding for processed payments.
After the discovery call, a detailed proposal and a demo of the system are provided, allowing the business to see how it works firsthand. If the business decides to proceed, a basic application is completed for credit card processing approval. An onboarding team then assists with integration, data migration, and initial test runs, ensuring a smooth transition. Clear Swipe emphasizes a hands-on approach to ensure successful implementation.
Are there any contracts or long-term commitments with CLEARSwipe?
No, CLEARSwipe typically operates on a month-to-month basis with no long-term contracts. This flexibility allows businesses to test the system and ensure it's a good fit for their operations without being locked into a lengthy agreement. This approach aims to reduce the "hurdle of change" for businesses, offering them peace of mind that they can adjust if the solution doesn't meet their needs. However, due to the significant savings and benefits, Clear Swipe rarely sees businesses cancel.
What are the long-term benefits of using CLEARSwipe's dual pricing model?
The primary long-term benefit for businesses is the elimination of credit card processing fees, which can be a substantial expense. For some businesses, these fees can amount to tens or even hundreds of thousands of dollars annually. By adopting dual pricing, businesses retain 100% of their advertised income, as customers choosing to pay by card cover the processing fee. This recovered capital can then be reinvested into the business for various purposes, such as increased marketing, hiring additional staff, providing employee bonuses, or even funding company events. This financial control and increased profitability can significantly improve a business's financial health and growth trajectory, leading to greater happiness and stability for business owners.
Contact CLEARswipe here to get started >>
+1 (800) 364-8148 or contact@goclearswipe.com
See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
