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Two Tier Pricing


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Most of the people on this site do the two tier pricing on card readers.  I am about the only one who doesn't, my reasoning is that the card reader is to get more sales, so why do I want to turn around and discourage those new customers with an extra charge?  But most operators disagree and want the extra dime per item to offset the high cost of CC readers in vending.  The cost IS crazy compared to a brick and mortar store operator, but the customer does not see that or care about it..... if your prices are too low to start with, you will either need to charge the dime or raise all your prices anyway...

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Starting my new readers with the two tier pricing, .10 cents higher price.

Think I am going to change the 10 I have out to two tier over the next couple of weeks.

With just a few it didn't make much difference. In a couple of weeks I'll have about 30 readers on machines, I think it will make a difference, it all adds up.

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It depends on the account for us. For most accounts we just bump up all the pricing and don't tier the cashless. We just got a new account and the previous operator had the 2 tier so we went with it because that's what they were used to. Now here is the kicker-we use USAT and debit card users get hit with that overpriced temporary hold. The previous company was using a Cantelope card reader system and they did NOT get a temporary hold on their account! Now how is that?!?

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I don't know.  I was told that the hold depends on the bank.  Perhaps cantaloupe had contacted banks and instructed them that their sale prices are small whereas the banks simply treat USAT as though it's just like a gas station and put a big hold.

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I wish USAT could get around it. Poor demographics in my area. Say the customer buys something at breakfast lunch and dinner from the machine. Those "holds" add up and they can be overdrawn. A real hindrance for me deploying more of these. I was shocked when the staff said the other company's readers did not do that. 

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Interesting question.  Could it be because one is set to preauthorize and the other accepts the card and the authorizes the charge post selection?  I know with Nayax we had the option to set one or the other, but the post selection authorization sometimes (rarely) took too long and the machine would time out, causing the customer to be charged but not receive product...

 

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At one time over the phone they told me there was nothing that could be done-a day or 2 later they got back with me and told me they were able to get it from $9 down to $6. You can buy up to 3 items with one swipe so I'm not sure if that is part of it or not? Example: 3 Monster energy drinks with one swipe.  

I just wish everyone would use a damn credit card. Lol. 

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You know if it really is the "bank" of the debit user that's behind this than you would think that it would be standard across the board. 

Looks like some systems charge it-some don't and some the $ amount can be adjusted.

 

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Simple.

Cantaloupe gets an authorization after the selection is made.
With Cantaloupe, you swipe, make your choice, and THEN it sends the authorization to the gateway.
I believe Nayax works like this as well.

USAT preauthorizes immediately right after the swipe, hence the hold period. Same way as how gas stations do it.

- Jason

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Thanks Jason.

So the pre-auth amount matches the sale price when done the Cantelope way? 

Why would they not all work this way?!?

I don't see an advantage to the gas station pump/USAT way. 

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The pre-auth can only be set by USAT. The "standard" pre-auth is $1.50, but allow purchase up to $5.00 or 3 vends which ever occurs first. You can call and change this to suit your needs, but it's a good basic set-up.

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I didn't know USAT could change the pre-auth amount.  I was always told that USAT would always pre-auth the highest vend price in the machine and that the true net charge wouldn't be reflected in the customer's account until the overnight settlement.

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2 hours ago, lacanteen said:

The pre-auth can only be set by USAT. The "standard" pre-auth is $1.50, but allow purchase up to $5.00 or 3 vends which ever occurs first. You can call and change this to suit your needs, but it's a good basic set-up.

This sounds like what we need. $1.50 instead of $6 would help a lot. 

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8 hours ago, jasonkw said:

Cantaloupe gets an authorization after the selection is made.
With Cantaloupe, you swipe, make your choice, and THEN it sends the authorization to the gateway.
I believe Nayax works like this as well.

That's what I said... it works if you have a strong, dependable signal.  If your signal is weak the machine may time out before the transaction is complete, causing the customer to get charged without receiving product.  The product will not dispense until the authorization completes.

 

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